"A new provision relating to tax deduction at source (TDS) under the Income Tax Act

1961 will become applicable with effect from 1

rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account

Number (PAN) of the deductee is not available.

st

April 2010. Tax at higher of the prescribed

It means that If pan is not available then TDS shall be deducted , As prescribed

rate or 20%, which ever is higher,on all transactions liable to TDS

For TDS on Salary if PAN is not available the rate will to 20% or higher.

Ex: Total Income Chargeable to Tax is 450000, after giving exemption (160000) income will be 290000, rate is 20%.

Here i have one question whether to considered exemption amount for taxing under non-availability of PAN.

Ex: Taxing 20% on full amount 450000.

In my opinion TDS should be deducted on full amount i.e. 450000 unless otherwise declaration is given in prescribed form (15a,b,,c,d,f, whatever)

Regards

M.S.kabra
 

If PAN furnishes by the deductee but he doesnot quote the pan on the correspondence bills given by him to the deductor. what is the TDS liability i.e 20% or respective rate.please reply

agree with madhusudan kabra

I think the exemple which i have shared was not so clear, i want to make it more cleare. Below exemple is calculated for Male (Non Senior Citizen).

1. If PAN is available.
Upto 1,60,000                 0% - 0
1,60,001 to 5,00,000   10 % = 29000
5,00,001 to 8,00,000    20 % - NA
8,00,000 and above     30% - NA

2. If PAN is not available
Upto 1,60,000                 0% - 0
1,60,001 to 5,00,000    20 % = 58,000
5,00,001 to 8,00,000    20 % - NA
8,00,000 and above     30% - NA

In the above exemple 2 (If PAN is not available) do we need considere the exemption 160000 or taxed as like below without considaring exemption limit ?

Total Income 4,50,000 * 20% = 90,000

In every case of TDS

Originally posted by : Rajesh
	For TDS on Salary if PAN is not available the rate will to 20% or higher. Ex: Total Income Chargeable to Tax is 450000, after giving exemption (160000) income will be 290000, rate is 20%. Here i have one question whether to considered exemption amount for taxing under non-availability of PAN. Ex: Taxing 20% on full amount 450000.

on full 450000, 20% is deductable

Dear All

Please solve my query i have deducted tds u/s 192 of 15000.00 but the actual tds liability in the financial of 09-10 was 12000. So please tell me how can i adjust rest of 3000.00 Aginst tds u/s 192. is it refundable or wat?

Hi,

You can claim refund of Rs. 3000 while filing the Return............

20% rate is applicable on all cases. as per sec-206AA if PAN is not available TDS shall be deducted at the rate 20% or applicable rate which ever is higher.