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CPC Communication - Structurally valid but non existent invalid PAN in TDS Returns

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ABCAUS Excel for Chartered Accountants

Excel for
Chartered Accountants

Dear Deductor ( TAN XXXXXXXXXX),

Centralized Processing Cell (TDS) has observed from its records that you have   reported deductees with invalid PANs   in your quarterly TDS statements.   These PANs appear structurally valid, however, they are actually invalid, as they are not available in the PAN Master records.

For example, ARUPS4625S appears to be a valid PAN according to the alphabets and numerals in its structure, however, this is an invalid PAN, as this is not available in PAN Master.

What is the impact :

The impact of such errors is significant in nature, in view of following :

As per section   206AA, the tax is to be deducted at a higher rate,   in case of reporting of   invalid PANs. Therefore, Short Deduction is charged even if the tax has been deducted at the Section Rate,   due to the applicability of section 206AA.

The deductor will   not be able to generate TDS Certificates   for their deductees with invalid PANs.

The   taxpayer will not be able to avail correct TDS Credits

What actions to be taken:

The impact of such errors is significant in nature, in view of following :

PAN Verification facility on TRACES   can be used for verifying the deductees. You are requested to   Login to TRACES   and navigate to   "Dashboard"   to locate   "PAN Verification"   in theQuick Links menu.

You can also use   "Consolidated TAN - PAN File"   that includes all the valid PANs attached with the respectiveTANs. To avail the facility,   Login to TRACES   and navigate to   "Dashboard"   to locate   "Consolidated TAN - PAN File".

To correct an invalid PAN reported earlier, a   C5 Correction Statement   is required to be filed.

The PANs can also be corrected using our   Online Correction facility
with Digital Signatures.
  To avail the facility,you are requested to   Login to TRACES   and navigate to   "Defaults"   tab to locate"Request for Correction"   from the drop-down menu. For any assistance, please refer to the   e-tutorial   available on TRACES.

xxxxx

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Latest Excel PANForm 49A >>

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