Tds on salary

This query is : Resolved

Manish (Querist)
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01 May 2014 Dear Experts,

We have deducted the TDS @ 20.6% Rs. 12078/- on Gross Salary Rs. 258632/- for the year as pan of the employee is not available and filed our TDS Return Form 24Q accordingly.

Now, TDSCPC has issued a demand notice to us and they calculated Gross TDS as Rs. 51726/- on it. Is it correct? If no, please write what we can do in this regard.

Thanks in advance..

Manish

@VaibhavJ

@VaibhavJ (Expert)
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01 May 2014 Hi

When PAN no. is not given than TDS@ 20% is to be deducted on entire taxable income without giving thresh hold deduction of Rs . 2 lac.

Also no cess is applicable on it.

Thx

Rupesh Jain

Rupesh Jain (Expert)
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01 May 2014 when an employee have no PAN then you have to deduct TDS @ 20% on all amount paid by you to employee.

TDS will deposit Rs. 51726/-@ 20%

TRACE demand is right.

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