Tds

This query is : Resolved

Arijit Biswas (Querist)
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31 December 2013 Dear Sir / Madam

Department has sent intimation U/s 200A of the Income Tax Act, 1961 for PAN error. Department claim 20% TDS for PAN error. I rectify the PAN of deductee. But the department sent intimation U/s 154 of the Income Tax Act,1961 demand short deduction for PAN error. I mail TDS CPC but they are reply The rectification of demand in other cases is not done if the mismatch is more than two alpha characters & two numerics. Therefore, out of 10 characters in case of structurally valid PAN, 4 characters are being considered for rectification of demand. My query any circular for this cases, please reply.

Regards,
Arijit Biswas

@VaibhavJ

@VaibhavJ (Expert)
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01 January 2014 Hi

Did you deleted old records for wrong PAN & gave new record with new PAN or you have done correction?

Thanks

Arijit Biswas

Arijit Biswas (Querist)
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04 January 2014 Dear Sir,

Deleted option has been removed new RPU 3.8 version. Please any opinion for this problem.

Regards,
Arijit Biswas

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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27 July 2025 Hey Arijit,

This PAN mismatch issue and partial rectification by TDS CPC is a known limitation. Here are some important points and suggestions for your case:

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### Background:

* TDS CPC follows a fixed logic for PAN mismatch correction.
* As per their system, **if more than 2 alpha and 2 numeric characters differ** between PAN records, they consider it a new PAN and do **not allow automatic rectification** of demand under Section 154.
* This is why your rectification request was rejected despite correcting the PAN.

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### Relevant Circulars/Guidance:

* There is **no explicit CBDT circular** that overrides the TDS CPC’s current practice for PAN mismatch rectification.
* However, CBDT has issued clarifications on PAN correction in TDS returns, but the rectification limits are system-enforced.

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### What can you do:

1. **File a Rectification Request (if possible) under Section 154 manually:**
You can submit a rectification request to the Assessing Officer (AO) citing the PAN correction along with documentary proof.

2. **File a grievance with CPC TDS online:**
Use the official TDS grievance portal ([https://www.tdscpc.gov.in](https://www.tdscpc.gov.in)) and explain the issue with full details and proof.

3. **Re-file or Correct TDS Return:**
Since RPU 3.8 doesn’t have delete option, you need to file a correction statement to update the PAN and deductee details.

4. **If demand persists, consider filing an appeal:**
If AO issues a demand order, you may file an appeal before the Commissioner (Appeals) with valid proof of PAN correction.

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### Preventive steps going forward:

* Always verify PAN before filing TDS return.
* Use updated RPU/FVU utilities to file correction statements.
* Maintain communication with deductees to ensure PAN correctness.

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If you want, I can help draft a letter for rectification or grievance to CPC TDS. Would that help?

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