Ramya Kinthali (Financial Consultant) (108 Points)
10 March 2011As per provisions of 206AA
If PAN of deductee is not available , deductor has liability to deduct tax at higher of following rate
a- rate specified in relvant in section
b- rate in force
c- 20%
can any one claerify with regard to follwoing...
what is the diff betwee "a" and "b"
Srinivas
(Finance & Accounts)
(107 Points)
Replied 10 March 2011
Hi,
"a" represents the rate which specified in the act for each section such as 194c, 194j...etc.
"b" represents the Lower rate of deduction. For example a company/firm had obtained a Lower Deduction Certificate from the concerned Assessing Officer then the deductor have to deduct at that lower only which specified in the Lower Deduction Certificate issued by the Assessing Officer/Income Tax Dept.
"c" represents the Higher rate. presently i.e.20% is applicable for which do not have PAN.
Hope the above info. will serve your query.
-B.Srinivas
Samkit
(Service)
(114 Points)
Replied 10 March 2011
Pls read attached file
Source March 2011 CA Journal.
MD.Taufique
(CA,CS)
(308 Points)
Replied 10 March 2011
Hi,
"a" represents the rate which specified in the act for each section such as 194c, 194j...etc.
"b" represents the Lower rate of deduction. For example a company/firm had obtained a Lower Deduction Certificate from the concerned Assessing Officer then the deductor have to deduct at that lower only which specified in the Lower Deduction Certificate issued by the Assessing Officer/Income Tax Dept.
"c" represents the Higher rate. presently i.e.20% is applicable for which do not have PAN.
Hope the above info. will serve your query.
-B.Srinivas
aGREE WITH HIM
Pothuganty sudheer
(Consultant, C.A, C.S)
(411 Points)
Replied 11 March 2011
I agree with the views posted. But i feel 20% would be higher in most of the cases.
Expert opinions are welcome.
Best regards,
yashsaxena
(Managing Director)
(71 Points)
Replied 11 March 2011
| Originally posted by : Samkit | ||
 |
Pls read attached file Source March 2011 CA Journal. |
 |
thanks for sharing I got all the details . . .
Ramya Kinthali
(Financial Consultant)
(108 Points)
Replied 11 March 2011
@ samkit...... tat file was very informative... got some new points from it.... thanks for sharing it...
balakrishna R
(manager finance)
(43 Points)
Replied 16 March 2011
Refer to the article march 2011 issue CA jounal - Is 206AA appilcable for payment salary/wage below taxable limit- (Rs.160000/-)?. Is PAN reuired for those workers/staff whose wage or salary below taxable limit.
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