Form 26QB: TDS default u/s 200A due to inoperative PAN

TDS & TCS TDS Return Forms
42

I think this is a mistake at some point in income tax website because before filing the TDS I checked the PAN AADHAAR link status on the income tax website for the Seller and I found that status as LINKED and PAN card Status as ACTIVE. Moreover, Seller has filed the tax on the capital gain on the property purchase few days back that means the PAN is ACTIVE and Operational.

I have filed 26QB to deduct TDS for the Seller. After filing 26QB I have got the notice of INTIMATION U/S 200A OF THE INCOME TAX ACT, 1961 of short deduction.
I am not able to understand how the PAN card can be non operational when the Income tax website is showing the status as ACTIVE and linked with Adhaar and the Seller has paid tax 10 days before.

Can someone help me in this

43

Hello @harshvermas

PAN should be operative and active on the date of payment.

Thus, it seems like the payment was made earlier when the PAN was inactive and later the PAN was linked to Aadhar and current status of PAN might be active.

To respond to such notice, you can pay the demand and the seller can claim the refund of the amount while filing ITR.

To understand other aspects of the same transaction, you can book a MEET with tax expert using the below link:

Ask an expert

Thanks

44

Thanks @AkashJhaveri yes it’s correct, seller didn’t inform, he linked PAN 9 days later of payment date, can i change the date of payment by rectifying 26qb, I took home loan whose aount was given to the seller

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Hey @harshvermas

Yes, you can file a revised 26QB but it will require seller and AO’s approval to get processed.

We can help you to file a revised 26QB return from the below link:

Book a slot

Hope, this helps.

46

If anyone changed the date of TDS payment and got the issue sorted out, kindly let me know. I heard that in such cases the date change request is pending with AO for more than 3 months.

47

Hey @Niranjan_P ,

If you wish to modify the payment date in your TDS return, here’s what you need to do:

First, submit a correction request for the return on the TRACES portal. Once submitted, the correction will require approval from the seller followed by the Assessing Officer (AO).

48

What do you mean by “approval from seller”? Do I need a written consent from the seller or do they need to do anything on their Incometax portal?