CPC (TDS) has introduced the convenience of online facility of PAN verification on TRACES. With this feature, you will be able to validate the PANs with confidence for the purpose of recording and reporting your transactions in the TDS statements correctly.
To avail the facility, one should login to TRACES and navigate to Dashboard to locate PAN verification in the Quick Links menu. The functionality to download Consolidated TAN-PAN File has also been provided that includes all the PANs attached with the respective TANs.
Benefits of having this facility:
- Reporting of correct data has been made mandatory by CPC (TDS). Reporting of invalid PANs results into Short Deduction defaults in processed TDS statements.
- Helps in generating correct TDS Certificates for the deductees.
- The taxpayer is able to avail correct TDS credits in time.
Additional functionalities available:
To correct an invalid PAN reported earlier, a C5 Correction Statement is required to be filed. In addition, the PANs can also be corrected using the Online Correction facility. To avail the facility, one should login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down menu.
PAN Correction steps through Online Correction:
Invalid to Valid PAN: The correct name of the Valid PAN will be displayed in Name as per changed PAN.
Valid to Valid PAN: If the new PAN entered is Invalid, a message is displayed in the Action Status. Please note that there is only one opportunity for a Valid to Valid PAN correction.
All the corrected rows can be viewed by clicking on Show Edited Rows on the screen.
Click on Submit for Processing, which will prompt to digitally sign the submission.