Higher TDS rate if PAN not disclosed

Companies and individuals who do not reveal their Permanent Account Number (PAN) while receiving income from any source will be liable to pay tax deducted at source (TDS) at the maximum marginal rate of 30 per cent (plus surcharge and education cess). Under the Income Tax Act, 1961, any income payable to the assessee is liable for TDS by the person or entity making the payment. TDS rate ranges from 1 per cent to 30 per cent depending on the nature of income. The Central Board of Direct Taxes is considering changes to the Act to this effect. For example, if a payment is made to a professional like an engineer or a doctor, TDS is deducted at a rate of 10 per cent. If the engineer or doctor fails to provide PAN number, tax will be deducted at the rate of 30 per cent. Similarly, if a contractor does not provide PAN, he will suffer a TDS at the higher rate of 30 per cent instead of 2 per cent now.

Replies (4)

Mr. Awanish Kumar,

Thanks for the info., Can u please send the GO, IT Order, etc., for the same.

Also, I am facing the problem in filing eTDS return, if the PAN is Less than 85%. The problem will solve if We Deducte the TDS in Higher Rate or still the problem continuee... or u have any solutions.

If its Possible

provide the notification ot circular

Thanks for the information Sir

 

But please provide the notificaton/govt order/ rule etc for the above provision

It is just a proposal Circular is awaited.

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