What To Do If Form 16 Is Issued With Wrong PAN?

I had invested in taxable RBI relief bonds. The UTI bank has deducted tax at source. But when I received the tax certificate, I found that the PAN entered is wrong. Will the IT dept allow with the wrong PAN number? Obviously no. But then how to solve this issue. I have to pay the tax again though UTI has deducted and paid at source. K Gopalkrishnan, Chennai

I am working with MNC since Aug 2006 in Delhi. Just week ago, I got my Form 16 (for year 2007-2008) and observed that PAN # was not correct, there was single character misspelled (‘P’ to ‘N’). I informed my employer about that mistake and they provided me new Form 16 having correct PAN and filed my tax return. On checking my previous year (2006-2007) return Form 16, I observed that was also having wrong PAN. My employer has deducted all tax (TDS) against that PAN.I talked about this last year return but my employer has told that for last year return they can’t do anything and told me to do yourself by talking to IT official (AO)/consultant. Could you please help me. Sushil Kumar , New Delhi

Wrong PAN in TDS or TCS certificates certainly makes the matter of giving credit to the deductee complex because these days the credit is being given directly by the computer based upon the PAN in the return filed by deductor. However, A.O can also rectify the mistake , if he is properly intimated with documentary proof . Therefore , one should take following steps :

In all those cases where PAN has wrongly been quoted, a tax payer should intimate the A.O in writing the moment one comes to know about this. This will preempt any charge of wrong quotation of Pan for which a penalty of Rs 10,000 may be levied if A.O finds that the PAN was wrongly written deliberately to hoodwink the department.

Additionally in cases like yours, deductor should be requested to issue a new certificate mentioning the new PAN . This new certificate should be attached with the letter of intimation to the A.O. Always mark a copy to JCIT/AddCIT of the range uner whom the A.O is posted. Keep records of your letter .

You do not have to pay tax again. In future , if any demand is created as no TDS credit is given to you, you can have a genuine grievance as you had intimated the A.O with the fallacies in TDS certificate issued by UTI Bank and that the rectified TDS certificate was also submitted with the A.O.