In some cases , we found that available Pan Numbers do not complete minimum criteria while submitting etds/etcs return. It is major problem. Solution for this is that we should only fill etds/etcs return only for those deductee whose pan numbers are available with us. In this way we can avoid penalty of Rs. 100/- per day for non-submitting return in time. After that as and when we receive Balance Pan Numbers, we should submit correction statement.
However, above problem will automatically removed as per new provision of Tax Deduction at Source (TDS) under the Income Tax Act 1961 effective from April 1,2010, TDS at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account Number (PAN) of deductee is not available or in valid.
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