As per the Finance Act, 2012, Income Tax Department applied Higher Rate of Tax when non-available of PAN No. of Tax Payee in TDS Statement at time of submission of TDS Return.
As you know when TDS deductor have submitted TDS Return with Flag "C", the Taxpayee charged a Higher Rate in absence of PAN number and TDS deducted less than 20%. Apart from this the Income Tax department has sent demand for the same matter to TDS Deductor. After getting notice from income tax department and if the TDS Deductor wants to submit correction statement then TDS Deductor faces the following problem:
As you know when TDS deductor have submitted TDS Return with Flag "C", the Taxpayee charged a Higher Rate in absence of PAN number and TDS deducted less than 20%. Apart from this the Income Tax department has sent demand for the same matter to TDS Deductor. After getting notice from income tax department and if the TDS Deductor wants to submit correction statement then TDS Deductor faces the following problem:
After TDS Deductor have the PAN No. of TDS Deductee. There for it is too defuclut to prepare correct FVU.
- Rows can not be deleted in case of tax deducted/collected at higher rate.
- Flag already marked "C" of higher rate, can not be changed.
It is critical position, what should be done by deductor to submit correction return without paying higher rate of tax @ 20%.
