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Income Tax Taxation

TDS Return Revision in case of PAN Error Notice from Department


Introduction– At the time of submitting the TDS return a very common error that occurs is that the PAN of the applicant entered wrongly, which as a result will make the TDS RETURN of the applicant defective and the applicant has to revise the same. The notice will send by the TDS department if they found PAN was wrong in the submitted return or the late fees were not paid. At the time of filing of TDS return, the below-mentioned point is required to be taken into TDS Return Revision.

Brief on TDS

As per the Income-tax Act provision, a tax-deductor is required to furnish a periodical TDS statement (Quarterly) containing the details of deduction of tax made during the quarter by the prescribed due date. A large number of the tax-deductor are not furnishing their TDS statement within the prescribed time limit. Delay in furnishing the TDS statement results in delay in granting the credit of TDS to the Tax-Deductee and consequently results in the delay in –

  • Issue of refunds to the Deductee taxpayers or
  • Raising of infructuous demand against Deductee taxpayers.

Further, in a large number of cases, the Tax-deductor is not furnishing Appropriate and correct information in the TDS statement like PAN of the Deductee, amount of tax deducted, etc.

Point to be considered while filing the TDS return– Furnishing of correct information in respect of tax deduction i.e. (Proper detail of PAN number) is critical for processing of return of income furnished by the Deductee because, on the basis of information furnished by the deductor, credit for TDS is granted to the Deductee.

How to revise the TDS return in case of PAN error notice from the TDS department?

To ensure the proper revision of TDS return, various types of revisions are required i.e.

  • To revise and update the tax deductor and tax deductee details such as the name and address and also update the challan details.
  • Revise the details of the PAN of the deductee or employee in case of an error in the PAN card Details.

However, the revision of the TDS return can only be filed if the TDS return filed originally is accepted by the TIN central system.

Revision of TDS Return

To revise the TDS return in case of PAN error the following steps are required:

1 . To acknowledge the notice received from the department and in case if the reasons are not properly disclosed than generate Justification Report from traces. To generate the justification report following steps are required-

  • Log in to the traces and to get the option of Request for Justification Report Download in the defaults Tab.
  • Once the details are furnished, Open the request for justification report will be done.
  • Further, to check the status of the file, click on REQUESTED DOWNLOAD in the Download Tab where a person can see the status of the Justification Report.

2. After acknowledging, open the justification report, which is in Text format. However, it is required to convert the text file into an excel file to make it readable. The conversion of the text file into an excel format is done by using the TRACES JUSTIFICATION REPORT GENERATION UTILITY. This utility can be downloaded by the user from TRACES login and below mentioned steps are required-

  • Go to Requested Downloads under Downloads,
  • Then, click on Click here to download the utility Click on TRACES Justification
  • Report Generation Utility v2.2.

3. Once the detailed reasons are found by the concerned person in the justification report the next step that is required is to request for console file option in the statement tab.

  • The Console file is the last return file submitted by the person.
  • Download the console file from the download section.
  • The Password for Console File is in the pattern of ‘TAN_’ (e.g. WXZY56785E_67890).
  • Request Number for Console File should be the request submitted for TDS revision.

4. Once the Console file is downloaded, the next step is to –

  • From TIN NSDL, Download the latest RPU* utility
  • Download the utility and open the console file in the correction section and then import the console file which has been downloaded from the traces and
  • When the file opens, make the necessary changes in the file.

5. Click on the save button, after updating the PAN details in the RPU utility and after saving the respective details, click on create the file and the following window will come.

  • Challan Input File Name with Path
  • Error/upload & Statistics Report file Path
  • Consolidate File Name with Path.

 The first step enters the CSI file, A person can generate the CSI file from Oltas online by clicking on the said link*

In the second step, enter the path where the person wants to save the file; and In the third step, browse the console file in the name of TDS which has been saved from Return Preparation Utility. FVU file and Form 27A will generate, after browsing[1] and validating all these 3 files.

Lastly, (FVU and form 27A) can be submitted to authorized TDS vendor and the vendor will file the return accordingly on your behalf.

Note: CSI file here refers to Challan Status Inquiry, where a person is required to enter the TAN details to download the CSI file. CSI provides a facility to the tax deductor to enquire about the status of the challans.

RPU – Refers to Return Preparation Utility

Priyanka Bajpayee

Priyanka Bajpayee has done Masters in International Business Law and well versed in content writing covering the area of legal and finance. Also, she has practical experience of almost 1.5 years in Legal compliance and secretarial work.

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