04 December 2013
G,mrng. to all, An employee who is not having PAN; his Gross income is Rs.4Lac he has deposited 1Lac under 80C, now his total income is Rs.3Lacs My question is on what amount tax will be calculated a) Rs.1Lac @20% b) Rs.3Lac @20% FYI, illustration given in Circular no. 8 dt:-10/10/201. if a person doesn't have PAN is not allowed for basic exemption limit of Rs.2Lac.
04 December 2013
in case of NO PAN and having taxable salary income more than basic exemption limit, then tds required to be done on total taxable salary income.. . . to say clearly tds required to be done either at the 20% on total taxable salary income or tax caluculated as per normal rates as per Sec.192..tds required to be done where tax amount is more . . TO make clear on this Kindly refer to Sec.206AA of the income tax act. . .
04 December 2013
Ans. so deduct tds @20% on 3 lakhs
As i said above tds is caluculated on taxable income.means.. . . ***salary income Less Chapter VIA deductions if any . . Refer Circular here . http://www.iiserbhopal.ac.in/PDF/Income%20Tax%20on%20salaries%20FY%202013-14.pdf . . model problem can be refered in 44 page . . Sec.206AA can be refered in para 4.8, which will be in 10th page
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