Correction in TDS return

Shyam C.Pujara (Student (C.A Final)) (177 Points)

02 April 2014  

Dear All,

One of my client deducted 2% TDS u/s 194C but provided wong PAN. regular return was filled, department issued demand notice demadning 20% tax, i filled revised return submitting correct PAN but didnt pay the amount which was determined by dept. in illusion that it will nullify demand automatically when proper PAN will be submitted  . My questions are

1) Do i need to deposit tax @ 20%??????

2) Will the deductee get credit of 20% tax if i deposit so?????

Thanks in advance