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A deductee's TDS credit is missing although the deductor filed the return and deposited the tax, because a wrong PAN was quoted.
Credit follows the PAN in the deductor's return; a typo, an old PAN or a missing PAN sends it elsewhere or leaves it unmatched, and only a deductor correction statement can move it.
A one-page request pack per customer with PAN copy, invoice, TDS amount, quarter, challan reference and the exact correction requested.
The deductor fixes the PAN in one attempt and the credit appears in the deductee's statement after the correction is processed.
Short answer: TDS credit follows the PAN your customer typed in their quarterly return, not the PAN on your invoice. If one character is wrong, the credit goes to someone else’s Form 26AS or stays unmatched. You cannot fix it yourself. Only the customer (the deductor) can, by filing a correction statement with your right PAN.
PAN, the Permanent Account Number, is the ten-character key for every tax credit in India. Five letters, four digits, one letter.
What can go wrong with the PAN?
| Cause | What you see | Who fixes it | Typical time |
|---|---|---|---|
| Typo (two characters swapped) | No entry in your statement | Deductor, by correction statement | Weeks after the correction is filed |
| Old PAN after a change of business form (proprietorship to company, say) | Credit sits on the old PAN | Deductor, after you give the new PAN | Weeks after correction |
| PAN not given | No entry; deductor may face the higher no-PAN rate | Deductor, after you send the PAN | Weeks after correction |
| Name and PAN do not match | Return line may be flagged | Deductor, after checking your PAN record | Weeks after correction |
How do I tell the PAN is the problem and not timing?
Run these checks first:
- Has the return due date passed by about four weeks? (31 July, 31 October, 31 January, 31 May.) If not, it may just be timing.
- Is the challan found? (See how to check whether the customer deposited the TDS.)
- Has the customer filed the return? Ask for the acknowledgement number.
If all three are yes and your Form 26AS (Form 168 from tax year 2026-27) still shows nothing from that customer, the PAN is the most likely cause. Ask them to read your PAN back from the return, not from their vendor master.
What do I send so they fix it in one attempt?
One email, with:
- a clear copy of your PAN card and your legal name as printed;
- the invoice number, date and value before GST;
- the TDS amount, section and quarter;
- the challan details (BSR code, deposit date, serial number) if they gave them to you;
- a plain request: “Please file a correction statement for the quarter, replacing PAN X with PAN Y for this line.”
The deductor files the correction through TRACES. Corrections for older periods are allowed within the time limit set in Section 200 of the 1961 Act.
Worked example: two swapped digits, ₹9,000 unmatched
Your PAN is AABCS1234F (example only). Your customer’s accounts clerk types AABCS1243F. The customer paid you ₹4,50,000 for contract work (before GST) and deducted 2% under Section 194C: ₹9,000.
- The challan is fine.
- The return is filed on time.
- But the ₹9,000 credit is posted to AABCS1243F, a PAN that may belong to someone else or to nobody.
Your Form 26AS shows nothing for this customer. Your books show ₹9,000 of TDS receivable. Until the customer files a correction replacing AABCS1243F with AABCS1234F and it is processed, the ₹9,000 is not usable against your tax.
If you have filed your return before the fix, you may need to revise or rectify it once the credit appears. Ask your CA.
What to read next
- The deductor query playbook: letter templates for TDS credit recovery
- TDS correction return: how to fix errors after filing
- How can I check whether my customer actually deposited the TDS?
PAN errors show up as a gap between your TDS receivable and the statement. TransactIG reconciles the two and puts each unmatched customer in an exception queue, so you know whom to write to; see TDS reconciliation software.
Content authored by practitioners with experience at Amazon India, Intuit QuickBooks, and the Tata Group. Meet the team →