CBDT Relief on TDS Demand for Inoperative PAN Under Section 206AA

CBDT Relief on TDS Demand for Inoperative PAN Under Section 206AA

Kya aapko bhi mila hai short deduction ka demand notice? Yeh circular aapke liye hai.

Agar aap ek deductor hain aur aapko recently TDS ya TCS "short deduction" ka demand notice mila hai  sirf isliye ki payee ka PAN transaction ke time inoperative tha  toh yeh blog aapke liye bahut kaam ka hai. CBDT ne Circular No. 9/2025 (dated 21 July 2025) ke through ek badi relief di hai un deductors/collectors ko jinhone normal rate par TDS/TCS kaata tha, lekin baad mein department ne unpar Section 206AA ya 206CC ke under higher rate ka demand raise kar diya.

Quick Summary: Agar payee ka PAN inoperative tha transaction ke time, lekin baad mein prescribed time-limit ke andar operative ho gaya, toh ab deductor par higher TDS/TCS rate ka liability nahi banega  normal rate hi valid maana jayega.

Background: PAN Inoperative Hone Ka Poora Chakkar

Yeh poori kahani shuru hoti hai Section 139AA se, jisne PAN ko Aadhaar se link karna mandatory bana diya tha. Rule 114AAA ke tahat, jin logon ne apna PAN Aadhaar se link nahi kiya, unka PAN 1 July 2023 se "inoperative" ho gaya.

CBDT Circular No. 3/2023 (dated 28 March 2023) ne clearly bataya tha ki inoperative PAN ke consequences kya honge:

  • Refund issue nahi hoga
  • Inoperative period ke liye refund par interest nahi milega
  • Section 206AA ke under higher rate TDS lagega
  • Section 206CC ke under higher rate TCS lagega

Problem yeh thi ki bahut se deductors ko pata hi nahi tha ki unke payee ka PAN inoperative ho chuka hai, aur unhone normal rate par hi TDS/TCS kaat diya. Baad mein jab return process hua, tab system ne automatically short deduction ka demand nikal diya  chahe payee ne baad mein apna PAN activate bhi kar liya ho.

Circular 6/2024: Pehli Relief, Lekin Limited

Isi grievance ko dekhte hue CBDT ne Circular No. 6/2024 (dated 23 April 2024) issue kiya tha. Isme relief mili un transactions ke liye jo 31 March 2024 tak hue the, bashart PAN 31 May 2024 tak operative ho jaye. Lekin yeh relief sirf ek limited window ke liye thi  uske baad ke transactions is circular mein cover nahi hote the, aur naya wave of demand notices aana shuru ho gaya.

Circular 9/2025: Extended Aur Bada Relief

21 July 2025 ko CBDT ne Circular No. 9/2025 issue kiya, jo Circular 3/2023 aur 6/2024 dono ko partially modify karta hai. Is naye circular ne relief ka daayra kaafi extend kar diya hai. Ab do scenarios cover hote hain:

Transaction Period PAN Operative Hone Ki Deadline Result
1 April 2024 se 31 July 2025 tak 30 September 2025 tak Koi higher rate liability nahi, normal rate valid
1 August 2025 ya uske baad Payment/credit wale month ke end se 2 mahine ke andar Koi higher rate liability nahi, normal rate valid
Important: Yeh relief sirf higher rate (206AA/206CC) ki liability se hai. Iska matlab yeh nahi ki TDS/TCS deduct hi nahi karna  normal applicable rate par deduction/collection zaroor karna hoga, jaisa Chapter XVII-B ya XVII-BB mein prescribed hai.

Kin Deductors Ko Yeh Relief Milega?

  • Jinka payee/deductee ka PAN transaction ke time inoperative tha
  • Jinhone phir bhi normal (higher nahi) rate par TDS/TCS kaata tha
  • Jinka PAN baad mein prescribed time-limit ke andar operative ho gaya (Aadhaar linkage ke through)
  • Jinke against system-generated demand notice already issue ho chuka hai short deduction/collection ke liye

Deductor Ko Kya Karna Chahiye  Action Plan

  1. Review karo: 1 April 2024 se ab tak ke saare TDS/TCS transactions check karo, especially jahan payee ka PAN inoperative tha.
  2. List banao: Un sab deductees/collectees ki list maintain karo jinka PAN transaction ke time inoperative tha.
  3. Status verify karo: Confirm karo ki us PAN ne prescribed window ke andar Aadhaar link karke operative status paya ya nahi.
  4. TRACES portal check karo: Dekho ki demand abhi bhi outstanding show ho raha hai ya nahi. Agar circular ke conditions match karte hain, toh yeh demand automatically adjust hona chahiye.
  5. Correction statement file karo: Agar zaroorat pade, toh TDS/TCS statement mein correction file karke demand ko rectify karwao.
  6. Documentation rakho: PAN operative hone ki date ka proof, Aadhaar linkage confirmation, aur transaction dates  sab safe rakho future reference ke liye.

Agar Aapka Case In Windows Mein Fit Nahi Hota Toh?

Yeh samajhna zaroori hai ki relief automatic nahi hai har case mein. Jaise agar transaction 31 March 2024 se pehle hua tha aur PAN 31 May 2024 ke baad operative hua (lekin 30 September 2025 se pehle), toh Circular 6/2024 ke terms strictly follow nahi hote  is grey area ke liye professional advice lena zaroori hai, kyunki har circular ki apni specific conditions aur cut-off dates hain jo overlap nahi karti.

Kyun Zaroori Hai Yeh Jaanna?

Higher rate under Section 206AA/206CC generally 20% tak ja sakta hai  jo normal rate se kaafi zyada hota hai. Agar aapko demand notice mila hai aur aap eligible ho relief ke liye, toh bina wajah differential tax aur interest pay karne ki zaroorat nahi. Isliye apne transactions ko time par review karna aur payee ka PAN status verify karna, dono hi crucial steps hain.

FAQs

Q1. Circular 9/2025 kab issue hua tha?
CBDT Circular No. 9/2025, 21 July 2025 ko issue hua tha, jo Circular 3/2023 aur 6/2024 ko partially modify karta hai.
Q2. Kya relief automatically milega ya kuch apply karna padega?
Agar conditions match karti hain, toh demand system-level par adjust ho sakta hai, lekin practically deductors ko TRACES portal par status verify karke, zaroorat pade toh correction statement file karna advisable hai.
Q3. Kya yeh relief property transactions (Section 194-IA, Form 26QB) par bhi lagu hoti hai?
Ji haan, yeh relief general hai aur Section 206AA/206CC ke tahat aane wali sabhi TDS/TCS provisions par applicable hai, jisme property transactions bhi shamil hain.
Q4. Agar payee ka PAN abhi tak inoperative hai, toh kya hoga?
Agar PAN prescribed time-limit ke andar operative nahi hota, toh relief applicable nahi hogi aur deductor par higher rate ki liability bani rahegi.
Q5. Kya yeh relief deductee/taxpayer ko bhi refund ya interest ke liye milegi?
Nahi, yeh circular specifically deductor/collector ki liability se related hai. Refund aur interest denial ke rules Circular 3/2023 ke tahat separately govern hote hain.
Disclaimer: Yeh blog general awareness ke liye hai aur professional tax advice ka substitute nahi hai. Apne specific case ke liye qualified Chartered Accountant se consult karein. Tax laws aur CBDT circulars time-to-time update hote rehte hain.
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