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TDS rate 20%

Bijoy (Working ) (127 Points)

17 December 2010

Hi Friends,

Can any one tell me that, If PAN is not available, 20% Flat rate should be charge only for contractor/Sub-contractor in transport business

It should be charge to all the sections of TDS (All types of nature)?

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26 Replies

Dhawal Mohnot (Practicing) (449 Points)
Replied 17 December 2010

it is applicable only for transport contractors.....

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Bijoy (Working ) (127 Points)
Replied 17 December 2010

R u sure?

Coz I heard that 20% is deducted from all type of deductee...............If PAN is not available.

Dhawal Mohnot (Practicing) (449 Points)
Replied 17 December 2010

am sorry .... it would apply in all cases... sec 206AA

1 Like

CA Shraddha Bankar (CA) (175 Points)
Replied 17 December 2010

20% deduction is applicable to all cases. Infact it is 20% or higher is applicable. For Eg in lottery winnings TDS @ 30% that in case if PAN is not submitted the 30% is to be charged.

Madhusudan Kabra (knowledge seeker) (1779 Points)
Replied 17 December 2010

Originally posted by : Shraddha Bankar
	20% deduction is applicable to all cases. Infact it is 20% or higher is applicable. For Eg in lottery winnings TDS @ 30% that in case if PAN is not submitted the 30% is to be charged.

Agreed with Shraddha Bankar jii

Regards

M.S.Kabra

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Bijoy (Working ) (127 Points)
Replied 17 December 2010

Thank you so much Friends................

pawan (Tax consultant ) (131 Points)
Replied 17 December 2010

Bijoy,

" If any person dosen't have PAN then he has to pay TDS @ 20% in any case of TDS"

Madhusudan Kabra (knowledge seeker) (1779 Points)
Replied 17 December 2010

Originally posted by : pawan
	Bijoy, " If any person dosen't have PAN then he has to pay TDS @ 20% in any case of TDS"

Pls confirm again sir jiiiiiiiiiiiiiiiiiiii

applicable rate would be 20 % or normal rate whichever is higher.

Regards

M.S.Kabra

CA ANKUSH AGGARWAL (CHARTERED ACCOUNTANT) (2782 Points)
Replied 17 December 2010

Originally posted by : Shraddha Bankar
	20% deduction is applicable to all cases. Infact it is 20% or higher is applicable. For Eg in lottery winnings TDS @ 30% that in case if PAN is not submitted the 30% is to be charged.

(Guest)

Originally posted by : Shraddha Bankar
	20% deduction is applicable to all cases. Infact it is 20% or higher is applicable. For Eg in lottery winnings TDS @ 30% that in case if PAN is not submitted the 30% is to be charged.

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CS LLB Pulkit Gupta (https://www.facebook.com/pages/Life-and-Promises/553962034682487) (16631 Points)
Replied 18 December 2010

Originally posted by : ANKUSH AGGARWAL
	Originally posted by : Shraddha Bankar 20% deduction is applicable to all cases. Infact it is 20% or higher is applicable. For Eg in lottery winnings TDS @ 30% that in case if PAN is not submitted the 30% is to be charged.

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114225 Points)
Replied 18 December 2010

After section 206A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2010, namely:—

“206AA. Requirement to furnish Permanent Account Number.—(1) Notwithstanding anything contained in any other provisions of this Act, any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB (hereafter referred to as deductee) shall furnish his Permanent Account Number to the person responsible for deducting such tax (hereafter referred to as deductor), failing which tax shall be deducted at the higher of the following rates, namely:—

(i) at the rate specified in the relevant provision of this Act; or

(ii) at the rate or rates in force; or

(iii) at the rate of twenty per cent.

(2) No declaration under sub-section (1) or sub-section (1A) or sub-section (1C) of section 197A shall be valid unless the person furnishes his Permanent Account Number in such declaration.

(3) In case any declaration becomes invalid under sub-section (2), the deductor shall deduct the tax at source in accordance with the provisions of sub-section (1).

(4) No certificate under section 197 shall be granted unless the application made under that section contains the Permanent Account Number of the applicant.

(5) The deductee shall furnish his Permanent Account Number to the deductor and both shall indicate the same in all the correspondence, bills, vouchers and other documents which are sent to each other.

(6) Where the Permanent Account Number provided to the deductor is invalid or does not belong to the deductee, it shall be deemed that the deductee has not furnished his Permanent Account Number to the deductor and the provisions of sub-section (1) shall apply accordingly.”.

Source:https://law.incometaxindia.gov.in/DitTaxmann/FinanceAct/FinAct20092/Finact69.htm

1 Like

CA ESHAN CHAKRAWARTI (job) (101 Points)
Replied 18 December 2010

suppose i have to make payment for interest on securities & tds @ 10% has to be deducted but the person to whom i have to make payment doesnt submitted his PAN. whether i will have to deduct his tds only @ 20% or 10% plus 20%.pls everyone give me solution...