TDS Deposited in Wrong Pan Number Belonging to Mother

This query is : Resolved

Santhosh Muralidhar (Querist)
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07 January 2023 Hi, I'm facing an issue.

I work as a freelancer on Fiverr Platform.

Fiverr deducts a 1% TDS on all the orders/projects that I complete on their platform. This TDS is deposited to my PAN given by government

For the AY 2022-2023 I have filed my income tax return and got it verified successfully. I even got a TDS refund of certain amount credited back to my bank account.

The issue is that Fiverr has deducted a 1% TDS of my earnings during the first quarter (Apr-June) of that year. But the TDS had got wrongly deposited into my mothers PAN number.

I think this was due to an error I did not realize at that time. I reckon a wrong PAN number was enter into my fiverr. I later changed this and added my PAN number in account

I requested fiverr support to change the PAN number for the TDS which was deposited during first quarter in wrong PAN. But fiverr Support replied and told me that they are now unable to change that wrong PAN number. Because they had already deposited TDS in that PAN and that was the PAN present during the time my orders were completed and fiverr deducted TDS.

But I have withdrawn the earnings of that period to my own bank account via paypal itself.

I think an amount of around 300000 INR worth of orders had got linked with the wrong PAN number and TDS issue during that quarter.

Now I see that a TDS of around 3500 has been deposited by Fiverr into my mothers PAN number due to that wrong pan number issue.

I'm just wondering is my mother required to file income tax and liable to pay any tax for this?.

I think that is not fair in my opinion.

Because I already reported that income and also included that income in my income tax return filing. Because anyways the full order earnings were withdrawn to my bank account.

My mother is a pensioner, Senior Citizen and has annual income around 2.4 lakh per annum. On top of that income I'm seeing my Fiverr income of around 340000 INR reported in TDS certificate Form 26A of my mothers PAN.

Does this means my mother should file income tax for this TDS deposited in Wrong PAN issue. However, no other income apart from her Pension is deposited in her bank account for sure. And I had already reported all my income in the income tax return successfully and got it verified.

Because my mother just got a SMS notification on December 30th from Income tax department saying that she should file tax return before the end of year.

I'm just worried a lot.

This is not my mothers fault actually.

I tired my best to resolve it with fiverr but they could not help me.

I'm of the opinion that it is not correct to report the same income twice right? I already reported the first quarter income in my tax returns and I calculated all of my bank deposits.

I'm also bothered of the fact that now the last date for filing income tax is already over. In case if my mom has to file the returns then it is going to attract lot of penalty.

Please let me know what step I need to take now

Thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 January 2023 File condonation application under section 119(2)(b) to claim refund of TDS deducted.
You can also leave it as it's and reply to the notice as wrong TDS deduction if any notice received.
No notice will be issued as it's small income.