Deductor not responsible for non-mention PAN of Deductee in TDS Certificate

As per Income Tax rulings regarding issuing of Form-16 or 16A, deductors are not responsible for non-mention of payees PAN in it. In the other words we can say if the TDS Deductee or Taxpayee not provided his PAN before issuing Form-16 or 16A, there is no penalty on deductor for non-mention payee’s PAN in there.

The following points will clarify the same:

If payee doesn’t furnish his PAN to deductor as required by section 139A(5A), deductor can’t be penalized under section 139A(5B) read with section 223B(1) for not mentioning payee’s PAN in TDS certificate issued to payee in Form 16A.

Where there is nothing on record to show that contractors to whom certain amounts were paid by asssessee after deducting TDS under section 194C/194J had intimated their PANs to assessee (deductor) as required by section 139A(5A), penalty can’t be imposed on assessee (deductor) under section 272B(1) for non-mention of the PANs of the contractors(payees) in Form 16A TDS certificates issued to them.

Default by contractors (payees) in furnishing their PANs to assessee (deductor) as per the requirements of section 139A(5A) is “sufficient cause” within the meaning of section 273B for deductor’s contravention of section 139A(5B) (failing to mention PANs of payee-contractors on their TDS certificates in Form 16A issued to payee-contractors). In view of this sufficient cause, no penalty imposable.

5 thoughts on “Deductor not responsible for non-mention PAN of Deductee in TDS Certificate

  1. Vishal Jaiswal

    I had an FD with Axis Bank in which PAN was not updated. Bank had deducted TDS @20% for FY 2014-15 & 2015-16.
    Now I am asking Form 16A from the bank but the bank manager is refusing by saying that Form 16A can not be issued when PAN is not there.
    Bank has issued Interest Certificate in which TDS amount has given.

    Now my query is-
    1. How can I may take credit of the above TDS for 2 years?
    2. Can I get form 16A after updating my PAN now?

  2. Saurabh Jain

    How TDS certificate to be issue where PAN is not available at the time of deducting and filing TDS return.
    how that person claim that amount of TDS after obtaining PAN after deducting/filing of TDS where PAN no mentioned.
    Is unique TDS certificate no is mentioned when PAN is not mentioned?

  3. Prerna

    If FD is a joint FD of two people, tax liability belongs to both or to the first holder? how will bank calculate TDS threshold for both people? Will it divide the interest by two, or will it hold the first person liable for the entire tax amount?

  4. Ramesh Suri

    This is fine. Now in the case where the FD in a bank is in a joint names of say A & B, and the TDS certificate is issued corectly in the name of the first holder A.
    Since the income of the FD is combined with that of the second holder B, and the IT department refuses to accept the TDS in the first holder A’s name & PAN for the IT return of the second holder B, and have asked to get the same changed to the PAN of the second holder B for it to be accounted for in the IT Return of B, under some rule 36 of 2009.
    After submitting all the documents to the deductor bank to make these changes as desired by the IT department and asked for by the bank, the deductor bank doesnot make the changes for two months and the form 26A still shows the same in the PAN of the first holder A, what can we do to satisfy the IT people?
    Is there any panalty in this case on the deductor?

    1. TDSMAN Post author

      Dear Sir,

      There is no penalty for making the changes. You have to consult your bank for getting the changes done.


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