Tuesday, April 26, 2011

e-TDS Return, e-TDS/e-TCS return without 100% PAN Numbers of deductees

Friends,  Before 1.10.2010, there was no provision to submit e-TDS/e-TCS return without having Permanent Account Numbers (PAN) of deductees.  Only e-TDS/e-TCS return can be submitted with some tricks.  After releasing new codes as C and T for higher rate and for non deduction of TDS for transporter, e-TDS/e-TCS return can be validated without 100% PAN numbers of Deductees.  To submit return without having 100% PAN, you have to select higher rate as coded "C" in column named "Reason for non-deduction / lower deduction" as shown in below picture. 

No doubt that the return can be uploaded with above suggestion, but if we deduct TDS @ less than 20% as shown in above picture,  Income Tax Department will certainly issue notice of balance TDS amount ( 20% TDS Amount - already deducted % of TDS amount) with interest etc.  I mean to say to submit accurate TDS return, either TDS amount should be deducted @ 20% or return should be revised after collecting PAN Numbers.

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