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TDS return if PAN Not available

R Arora (Manager Accounts) (33 Points)

09 March 2011

Need to find out as per the last year notification, if PAN notavailable then TDS to be deducted at Higher rate i.e 20% , but what needs to be done at the time of filing return, if PAN is not availble for more then 15% of deductees.

regards

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13 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 09 March 2011

if more than 15% deductees don’t have pan than return will not accept. You don’t deduct for tds of some person and than percentage of non pan available deductee will come down. And tell your employees to file form 49 for allotment of PAN. After filing this form employee will get PAN in next 14 days and then start deducting tax according to assess tax liability from next month and file return.

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 09 March 2011

20% TDS for absence of PAN is a provision done by IT department to enforce the business person to get PAN at own interest, and rejection of TDS returns for more than 15% non pan entries is to prevent the entries of manipulated expenditure availed as business expenditure.

it also plugs the loopholes of ill behaviour done by some persons who issue multiple sets of invoices and account any one set where pan is mentioned, balance goes to generate the tax evasion side, so such steps by department will force them to furnish PAN in every transaction done by them to avoid higher side of tax deduction.

every person who is liable to deduct TDS should get awareness to get PAN details of the persons with whom they are dealing with, or to escape them for their own mental peace.

1 Like

Ramya Kinthali (Financial Consultant) (108 Points)
Replied 10 March 2011

may i please know the section , as per which return will be rejected if it has more than 15% duductees without PAN...

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 March 2011

https://www.incometaxindia.gov.in/etds_faqs.asp

read clause 38

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SAKET PANDEY (CA FINAL STUDENT) (256 Points)
Replied 10 March 2011

Originally posted by : U S Sharma
	20% TDS for absence of PAN is a provision done by IT department to enforce the business person to get PAN at own interest, and rejection of TDS returns for more than 15% non pan entries is to prevent the entries of manipulated expenditure availed as business expenditure. it also plugs the loopholes of ill behaviour done by some persons who issue multiple sets of invoices and account any one set where pan is mentioned, balance goes to generate the tax evasion side, so such steps by department will force them to furnish PAN in every transaction done by them to avoid higher side of tax deduction. every person who is liable to deduct TDS should get awareness to get PAN details of the persons with whom they are dealing with, or to escape them for their own mental peace.

agree with you sir but if suposse i have such suppliers or service providers who are happy to deduct TDS @ 20% but not ready to provide the PAN then what should be the remedy to me?

The department should comeout with a scheme in which a form for return of TDS in which the TDS of non PAN holders will be filled without any limitation of 15% non PAN holders.

This special returns will be directly go to the governments income account insted of liability account.

1 Like

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Srinivas (Finance & Accounts) (107 Points)
Replied 10 March 2011

Hi,

You can deduct the TDS @ 20% for which the PAN is not available and while preparation of Return also you have to furnish the same and you have to select the "C" from the drop down list of the column "Reason for Lower Deduction"

thanks

B.Srinivas

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(Guest)

the criteria for 85% / 95% (as the case may be) is removed for tds return filling

so fill with PAN not available

SAKET PANDEY (CA FINAL STUDENT) (256 Points)
Replied 10 March 2011

Originally posted by : sweety
	the criteria for 85% / 95% (as the case may be) is removed for tds return filling so fill with PAN not available

pls provide the details like cerculer or guidelines. thanks

Venkatesh (Financial Data Analyst Tax Planner Insurance Advisor) (192 Points)
Replied 10 March 2011

"what needs to be done at the time of filing return, if PAN is not availble for more then 15% of deductees."

For the above query, as per the guidelines posted in the website tin-nsdl.com, if TDS is being deducted from Xyz, but he doesnot have a PAN in that case the ETDS returns can be filed, the procedure is as follows,

1. include only the names of parties/employees from whom the TDS is deducted in the Deduction 26Q /Saldeduction 24Q sheet.

2. Enter the full challan amount in the Challans sheet. (although the TDS doesnot match with deduction and challans, still it is accepted as the challan amount is higher compared to deductions)

3. on receipt of the PAN numbers from the remaining parties/employees on a later date, file the revised returns including the names from whom the PAN is received in the deduction sheet.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 March 2011

Originally posted by : SAKET PANDEY
	agree with you sir but if suposse i have such suppliers or service providers who are happy to deduct TDS @ 20% but not ready to provide the PAN then what should be the remedy to me? The department should comeout with a scheme in which a form for return of TDS in which the TDS of non PAN holders will be filled without any limitation of 15% non PAN holders. This special returns will be directly go to the governments income account insted of liability account.

just take a break, if a supplier to whom u deduct 20% from bill and dont issue TDS certificate, means he can not avail Set off for taxes, so his remaining 80% is still with profit, otherwise he will NOT take the job.

department is taking notes on such "PAN NOT AVAILABLE" cases, and soon u will see that they are in vigilance net for such transactions.

A PAN NUMBER is cost less than 100/- but the client is ready to give up 6000 to unlimited amount as TDS, but not providing PAN, what this output display ?

either the transaction is made by the deductor self for saving 10% ( 30% minus 20% TDS) or the client in front has fake invoices which are unaccounted in any department, they issue, take payment and tear off them, so in case of any scurtiny, what would be situation of the client who is receiving these invoices and pays?

in coming days the ppl will avoid such ppls who would not provide PAN details, be sure.

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Siddharth Khetan (2 Points)
Replied 15 September 2020

What should we fill in pan number of 26q utility if we don,t have pann of the vendor , as it does not accept a blank column .

ELANCHELIAN K (Article Assistant) (41 Points)
Replied 06 January 2023

i have filed the tds return on some pan not available employees, now we need to remove that certain employees in tds return and get back the balance on challan. please advise its possible ?