Question And Answer
Subject: Pan and Aadhar linked status was updated after filing of Form 26QB.
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Date: October 16, 2023
Query asked by MOHAMED ALI

Hon’ble experts,

The buyer deducted  TDS at 1%  u/s 194IA of the I.T. Act on Stamp value. The PAN number furnished by the seller was inoperative at the time of filing the from 26QB. Department deducted the TDS u/s 194IA at the rate of 20% due to non furnish the PAN card and issued the imitation order along with notice of demand.

PAN card and Aadhar Card linked successfully.

But, Pan and Aadhar card linked status is not updated in TDS Traces portal.

Kindly help me out from this situation,

With Regards,


Tax Practitioner.

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Answer given by

As per the provisions of the Income-tax Act, 1961, everyone who has been assigned a PAN as of July 1, 2017, and is entitled to receive an Aadhaar Number is required to notify the prescribed authority.
In the absence of PAN or inoperative PAN at the time of entering into any financial transactions, the Assessee will face consequential effects i.e. will have to pay 20% TDS on said transactions / No TDS credit will get from the Income Tax department / No TDS certificate will be issued (As per CBDT circular no:03/11) / Form 15G/H and other exemption certificates will be invalid and penal TDS will apply.
In such a scenario, the PAN can be made operative by making an application for “Request for New PAN Card or/ And Changes or Correction in PAN Data” in same PAN No. to the prescribed authority i.e. Tax Information Network of Income Tax Department. After that the PAN data gets updated correctly or becomes operative within 15 days, then PAN can be made operative again in 30 days, upon intimation of UID to the prescribed authority after payment of a fee of Rs.1,000/- to be linked. After linking with PAN & Aadhar status will automatically get updated in the TDS Traces portal.
Once the details of the Assessee get updated in the TDS Traces portal, the Assessee may respond to the initiation order along with a notice of demand, to remove the demand raised by the department.

The assessee can write to grievance cell of the Income tax department . If no response is received within reasonable time the assessee may have to file writ before the High Court .

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