Answer

1. F

   Facts

   The usual reasons are that the deductor has not filed the TDS statement, quoted a wrong PAN, filed under a wrong section or year, or made an error in the challan. Sometimes the tax was deducted but not deposited at all. Each reason has a different fix.

2. P

   Provisions and law

   • Sec 199, Income-tax Act 1961TDS deducted and paid to the government is treated as tax paid on your behalf and credited as per the Rules
   • Sec 200(3) (now Sec 397(3)(b))Deductors must file quarterly TDS statements and can file correction statements
   • Sec 201(1A) (now Sec 398(3))Deductor pays interest of 1.5% a month for tax deducted but not paid to the government
3. A

   Analysis

   If the statement was not filed, the deductor must file it; if the PAN was wrong, the deductor must file a correction; if the challan was wrong, the deductor must correct the challan details on TRACES. Where tax was deducted but not deposited, the deductor owes interest at 1.5% a month under Sec 201(1A) and you can rely on Sec 205. Asking the deductor for the challan number and quarter helps pin down which case it is. Form 26AS booking status can also give a clue.

4. C

   Conclusion

   1. 1Ask the deductor for the challan number, date and quarter of filing.
   2. 2Check the PAN they used.
   3. 3Compare with Form 26AS entries.
   4. 4Agree on the correction they will file and a date.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.