Will keep it short.
My mother had 2 PAN by mistake, apparently the first PAN was not delivered to us by the agents and we thought its not there. Recently we wanted to change her DOB and while doing so get to know that she has 2 PAN registered in her name.
Upon knowing this we got the issue resolved closed the first PAN. But got a notice from AO asking the reason for this and why should he not pose penalty under section 272b(1). I replied to the notice mentioning it was all by mistake and we did not do it intentionally.
Fast forward today we got a notice “Response to outstanding demand” of 10000.
How can I proceed further?
She is a homemaker and does not earn anything. While checking the Annual Information statement I found that for AY 23/24 say she got 40k credit from interest from bank and 4k was deducted as TDS.
So what can we do in this situation. From my understanding is that we can also claim the 4k TDS as the income is none basically. But what about the 10k penalty?
Please provide your guidance expert’s