Friends, Today I have checked a new Demand Notice for the financial year 2011-12 or Assessment Year 2012-13 worth Rs. 2.75 Lakh. On inquiry, it is found that this demand has been raised mainly due to Technical errors of TRACES. I mean to say, PAN numbers already corrected in 24Q4 return through submission of correction return. But tdscpc.gov.in still showing wrong pan numbers (which have already been corrected through correction return and accepted by TRACES) marking in Red Color and have charged maximum of tax between 20% or Tax Slab charged on employee. This percentage has been calculated on taxable amount of the each employee.
Secondly, major error was that TRACES has shown wrong Category of employee. Deductor had entered category of employee as Women and demand notice has been issued assuming the same employee as Male.
Finally It has been decided that deductor should check their record deeply and should not pay any demand notice without his satisfaction. However justification report is also not satisfactory report till date.