Income tax tds notice not clear
This query is : Resolved
24 January 2014
Hello Experts.
My client is a Bank and has recd. a notice of defaults in TDS payments after we filed his correction statement.
In earlier correction statement we had inserted some PANs in Pan not Avbl. entries on which Bank had deducted 20% in some entries only. Further, in some entries wrong PAN was quoted & this was also corrected by us. Naturally in the cases of wrong PAN quoted bank had deducted tds @ 10% instead of 20% believing that the PANs were correct.
Now Income tax deptt. demands TDS @ 20% in cases where PAN was not avbl earlier and less than 20% was deducted which we believe is correct though we had inserted PAN in correction but the liability was of 20%.
The confusion is that even after correction the wrong PAN quoted on which 10% TDS was deducted still ITD is asking for 20% on it in it's Justification Report. However in some such entries ITD is satisfied stopped demanding 20%. The picture is not clear as in some entries they are demanding 20% in some others they have closed it, though we followed the same treatment of quoting correct PANs in all such entries.
Is deptt.'s contention correct?
My client is a Bank and has recd. a notice of defaults in TDS payments after we filed his correction statement.
In earlier correction statement we had inserted some PANs in Pan not Avbl. entries on which Bank had deducted 20% in some entries only. Further, in some entries wrong PAN was quoted & this was also corrected by us. Naturally in the cases of wrong PAN quoted bank had deducted tds @ 10% instead of 20% believing that the PANs were correct.
Now Income tax deptt. demands TDS @ 20% in cases where PAN was not avbl earlier and less than 20% was deducted which we believe is correct though we had inserted PAN in correction but the liability was of 20%.
The confusion is that even after correction the wrong PAN quoted on which 10% TDS was deducted still ITD is asking for 20% on it in it's Justification Report. However in some such entries ITD is satisfied stopped demanding 20%. The picture is not clear as in some entries they are demanding 20% in some others they have closed it, though we followed the same treatment of quoting correct PANs in all such entries.
Is deptt.'s contention correct?
24 January 2014
Dear Kamaldeep,
Revise your return with correct PAN numbers,system will show th correct interest.
Regards
Revise your return with correct PAN numbers,system will show th correct interest.
Regards
24 January 2014
Dear Kamaldeep,
Revise your return with correct PAN numbers, system will show the correct interest.
Regards
Revise your return with correct PAN numbers, system will show the correct interest.
Regards
24 January 2014
Hello Mr. Rajesh...I have mentioned that the original return had ENTRIES WITH WRONG PAN and ITD furnished the notice demanding 20% on these entries. We had revised the return once already after this and shown correct Pans, but then also the latest Notice after the said correction and latest Just. Report shows tds demand @ 20% in many entries, though there are some entries in which the earlier raised demand of 20% has been nullified.
Can there be a Faulty Just. Report...I am not sure. Earlier when such thing happened ITD nullified all such demands if entries had correct 10% deduction and correct PAN in revised return was quoted in correction return. This is the first time we are facing this type of issue
Can there be a Faulty Just. Report...I am not sure. Earlier when such thing happened ITD nullified all such demands if entries had correct 10% deduction and correct PAN in revised return was quoted in correction return. This is the first time we are facing this type of issue
25 January 2014
kamaldeep sing
note my email id: sugavanamsekar@yahoo.com and come on a chat by 25/01/2014 evening 4.30 pm. I will try to explain you how to drop your penal notice.
please be prepared with all datas while chating
note my email id: sugavanamsekar@yahoo.com and come on a chat by 25/01/2014 evening 4.30 pm. I will try to explain you how to drop your penal notice.
please be prepared with all datas while chating
25 January 2014
Hello Sir,
Sorry didn't see your message.But I can explain my problem. I was approached by a bank who had been served upon an Income tax TDS notice from traces. They had in their original return quoted some wrong PANs unintentionally due to some typing errors. However, they had deducted correct TDS @ 10% on Interest on FDRs which was being paid to the said PAN holders. Therefore Deptt. served a notice to pay TDS @ 20% on such payments. This seems correct as deptt. considered them as PAN NOT AVBL entries and therefore demanded 20% TDS on them.
However, we corrected the said return by revising it and furnishing correct PANs against all such entries wherever we found such mistake. Now again we have recd. a demand notice which requires the bank to pay 20% TDS on some entries which we have already corrected.We have again checked these PANs on which they are currently demanding 20% TDS and they are correctly quoted by us in revised return filed already once.
Most importantly out of say 10 entries that we corrected, the original demand of 20% TDS on almost 30% to 40% entries have been nullified and rest demands stands as it is which doesn't make any sense.
Kindly help.
Sorry didn't see your message.But I can explain my problem. I was approached by a bank who had been served upon an Income tax TDS notice from traces. They had in their original return quoted some wrong PANs unintentionally due to some typing errors. However, they had deducted correct TDS @ 10% on Interest on FDRs which was being paid to the said PAN holders. Therefore Deptt. served a notice to pay TDS @ 20% on such payments. This seems correct as deptt. considered them as PAN NOT AVBL entries and therefore demanded 20% TDS on them.
However, we corrected the said return by revising it and furnishing correct PANs against all such entries wherever we found such mistake. Now again we have recd. a demand notice which requires the bank to pay 20% TDS on some entries which we have already corrected.We have again checked these PANs on which they are currently demanding 20% TDS and they are correctly quoted by us in revised return filed already once.
Most importantly out of say 10 entries that we corrected, the original demand of 20% TDS on almost 30% to 40% entries have been nullified and rest demands stands as it is which doesn't make any sense.
Kindly help.
01 August 2024
It sounds like you're dealing with a complex issue regarding TDS and PAN mismatches. Here's a step-by-step approach to resolve this situation:
### 1. **Review Revised Returns**
- Ensure that the revised TDS returns were correctly filed with the updated PANs.
- Verify that the revised returns reflect all the corrections and that there are no discrepancies.
### 2. **Cross-Verify PANs**
- Recheck the PANs against the records and ensure they are accurately reflected in the revised returns.
- Confirm that the PANs for which the demand notice has been issued match the ones in the revised returns.
### 3. **Match Data with TRACES**
- Access the TRACES portal and download the latest TDS statement to verify if the corrections are accurately reflected.
- Compare the entries in the TRACES statement with your revised returns to identify any discrepancies.
### 4. **Check Demand Notice Details**
- Scrutinize the demand notice carefully to understand which specific entries are being flagged.
- Verify whether the demand notice corresponds to entries for which you have already made corrections.
### 5. **Raise an Online Rectification Request**
- If you have confirmed that the revised returns are correct, file an online rectification request on the [Income Tax e-filing portal](https://www.incometax.gov.in/iec/foportal/).
- Provide the details of the revised return and highlight the discrepancies in the demand notice.
### 6. **File a Written Response**
- Draft a formal response to the Income Tax Department, including:
- A copy of the revised TDS return.
- A copy of the revised TDS statement from TRACES.
- A detailed explanation addressing the discrepancies.
- Submit the response to the assessing officer who issued the demand notice.
### 7. **Contact the Bank's TDS Cell**
- Coordinate with the bank’s TDS cell or compliance department to ensure that they are aware of the situation and that the necessary steps are being taken.
- Ensure all relevant documents are collected and maintained.
### 8. **Follow Up**
- Keep track of any communications and follow up with the Income Tax Department or the bank's TDS cell to ensure that the rectification request is processed.
- Maintain a record of all correspondence and notices for future reference.
### Summary
1. **Ensure Accuracy**: Verify that the revised TDS returns are accurate and reflect the correct PANs.
2. **Verify with TRACES**: Cross-check the TDS statement from TRACES to confirm the corrections.
3. **Rectification Request**: File an online rectification request and provide a detailed response to the Income Tax Department.
4. **Follow Up**: Ensure that the corrections are acknowledged and the demand notice is adjusted accordingly.
If the issue persists or you face challenges in resolving it, consider consulting a tax professional or legal advisor for more specialized assistance.
### 1. **Review Revised Returns**
- Ensure that the revised TDS returns were correctly filed with the updated PANs.
- Verify that the revised returns reflect all the corrections and that there are no discrepancies.
### 2. **Cross-Verify PANs**
- Recheck the PANs against the records and ensure they are accurately reflected in the revised returns.
- Confirm that the PANs for which the demand notice has been issued match the ones in the revised returns.
### 3. **Match Data with TRACES**
- Access the TRACES portal and download the latest TDS statement to verify if the corrections are accurately reflected.
- Compare the entries in the TRACES statement with your revised returns to identify any discrepancies.
### 4. **Check Demand Notice Details**
- Scrutinize the demand notice carefully to understand which specific entries are being flagged.
- Verify whether the demand notice corresponds to entries for which you have already made corrections.
### 5. **Raise an Online Rectification Request**
- If you have confirmed that the revised returns are correct, file an online rectification request on the [Income Tax e-filing portal](https://www.incometax.gov.in/iec/foportal/).
- Provide the details of the revised return and highlight the discrepancies in the demand notice.
### 6. **File a Written Response**
- Draft a formal response to the Income Tax Department, including:
- A copy of the revised TDS return.
- A copy of the revised TDS statement from TRACES.
- A detailed explanation addressing the discrepancies.
- Submit the response to the assessing officer who issued the demand notice.
### 7. **Contact the Bank's TDS Cell**
- Coordinate with the bank’s TDS cell or compliance department to ensure that they are aware of the situation and that the necessary steps are being taken.
- Ensure all relevant documents are collected and maintained.
### 8. **Follow Up**
- Keep track of any communications and follow up with the Income Tax Department or the bank's TDS cell to ensure that the rectification request is processed.
- Maintain a record of all correspondence and notices for future reference.
### Summary
1. **Ensure Accuracy**: Verify that the revised TDS returns are accurate and reflect the correct PANs.
2. **Verify with TRACES**: Cross-check the TDS statement from TRACES to confirm the corrections.
3. **Rectification Request**: File an online rectification request and provide a detailed response to the Income Tax Department.
4. **Follow Up**: Ensure that the corrections are acknowledged and the demand notice is adjusted accordingly.
If the issue persists or you face challenges in resolving it, consider consulting a tax professional or legal advisor for more specialized assistance.
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