TDS Return PAN-Inoperative instead of PAN and AADHAR already linked

[milan bamal]

Dear Team,

We filled TDS return Q-1 25-26 recently of our firm.

PAN and aadhar has been already linked of all dedutees.But TDS return processed with default i.e 2 PAN out of all PANs is Non-operative and demand 20% TDS instead of 1%.But PAN and Aadhar has been already linked as we have checked on income tax portal at Aadhar link status.

What is the solution

 

AI Summary

PAN-Aadhaar linkage timing can trigger higher TDS; check linking date and pursue rectification or pay differential tax.
Higher TDS resulted because CPC-TDS assessed PAN operative status on the deduction date and treated PANs as inoperative where Aadhaar was not linked at that time; linking Aadhaar after the deduction date does not retroactively change CPC validation. If linking occurred after deduction, regularise by paying the differential TDS and interest and file correction statements; if linking occurred before deduction, file a rectification on TRACES with proof of the earlier linking and escalate if rectification is rejected.