DEAR ALL,
PLS EXPLAIN WHAT IS THE % OF TDS APPLICABLE IF EMPLOYEE IS NOT PROVIDING THEIR PAN NO(IS IT 20 % OR 10%).
I.E GROSS SALARY OF AN EMPLOYEE(INDIVIDUAL) FOR THE FINANCIAL YEAR 2010-11 IS RS.1.80 LAKH & HE DOES NOT HAVE PAN CARD.
THANKS
NITIN
28 Replies
VIKAS KAPOOR
(MANAGER ACCOUNTS)
(143 Points)
Replied 28 April 2011
NO NEED TO TAKE PAN IN THIS CASE.
KIYOSH
(TAX CONSULTANT)
(332 Points)
Replied 28 April 2011
IF EMPLOYEE NOT PROVIDING PAN THAN I THING ITS 20%
CA AMANPREET SINGH
(Chartered Accountant)
(284 Points)
Replied 28 April 2011
No exception is Given in Sec.206AA . thus it should be applied for all payments including salary.
CA.Naveen Kailkhuri
(CA)
(38 Points)
Replied 28 April 2011
1. Whe the Person has not disclosed his PAN then TDS rate is 20%.
2. In your case you have to see whether there is any tax liability on the employee at all or not. i,e. after considering his deductions u/s 80C etc.
3. If there is no tax liability on employee then no need to collect PAN no.
Arun A P
(Learning thro experience)
(64 Points)
Replied 28 April 2011
The following Notification might strength the discussion that TDS is deductible @ 20% inclusive of Slary Payments.
No.402/92/2006-MC (04 of 2010)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
***
New Delhi dated 20th January 2010
PRESS RELEASE
A new provision relating to tax deduction at source (TDS) under the Income Tax Act
1961 will become applicable with effect from 1st April 2010. Tax at higher of the prescribed
rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account
Number (PAN) of the deductee is not available. The law will also apply to all non-residents
in respect of payments / remittances liable to TDS. As per the new provisions, certificate for
deduction at lower rate or no deduction shall not be given by the assessing officer under
section 197, or declaration by deductee under section 197A for non-deduction of TDS on
payments shall not be valid, unless the application bears PAN of the applicant / deductee.
2. All deductors are liable to deduct tax at the higher rate in all transactions not having
PAN of the deductees on or after 1st April 2010. In order that there is no dispute regarding
quoting / non-quoting of PAN or accuracy thereof, the law requires all deductees and
dedutors to quote PAN of deductees in all correspondences, bills, vouchers and other
documents sent to each other. All deductors are, therefore, advised to intimate their
deductees to obtain and furnish their PAN so as to avoid TDS at a higher rate. All deductees,
including non-residents having transactions in India liable to TDS, are advised to obtain PAN
by 31st March 2010 and communicate the same to their deductors before tax is actually
deducted on transactions after that date.
3. The procedure for obtaining PAN is simple, inexpensive and quick. Application for
PAN can be filed in Form 49A to National Securities Depository Ltd. (NSDL) or Unit Trust
of India Investor Services Ltd. (UTIISL) or their intermediaries. Non-residents can apply
through the local embassy / consulate of India. Applications can also be filed, paid for or
tracked online through the Internet on the following web-sites:-
https://incometaxindia.gov.in/
https://incometaxindiaefiling.gov.in/portal/index.jsp
https://www.tin-nsdl.com/
https://www.utitsl.co.in/
4. The Central Board of Direct Taxes (CBDT) has issued Notification No.94/2009
relating to taxation of perquisites / profits in lieu of salary and Circular No.1/2010 for the
guidance of tax dedutors for salaries. These documents are available on the department’s web.
Thanks & Regards
Nayan Das
(ACCOUNTS MANAGER)
(981 Points)
Replied 29 April 2011
WITH OUT PAN CARD TDS DEDUCT 20% IN ALL SECTION
Ankit Kukreja
(Student)
(40 Points)
Replied 29 April 2011
TDS will be deducted @ 20%, not 10%, even the slab benefit will not be available from now on!
Ankit Kukreja
(Student)
(40 Points)
Replied 29 April 2011
TDS will be deducted @ 20%, not 10%, even the slab benefit will not be available from now on!
babu
(Senior accountant)
(80 Points)
Replied 29 April 2011
It is 20% but the salary case no need the paIN
CA Shraddha Bankar
(CA)
(175 Points)
Replied 30 April 2011
| Originally posted by : CA.Naveen Kailkhuri | ||
 |
1. Whe the Person has not disclosed his PAN then TDS rate is 20%. 2. In your case you have to see whether there is any tax liability on the employee at all or not. i,e. after considering his deductions u/s 80C etc. 3. If there is no tax liability on employee then no need to collect PAN no. |
 |
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