Operative PAN: TDS on Salary Explained

This query is : Resolved

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This discussion clarifies the tax implications when an individual's PAN card is operative and their salary exceeds 3 lacs. It addresses whether a company can deduct TDS at 20% in such scenarios and the consequences if TDS isn't deducted and tax returns aren't filed. The conversation also touches upon how companies handle TDS returns when employees have inoperative PANs and the potential recovery from employees in the next financial year.

Keyur

Keyur (Querist)
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30 May 2024 Sir,

Can you guide me that suppose my pan card is in operative and my salary is more than 3 lacs then company can deducted tds on Salary @ 20% or not to deduct tds??

If company not deduct tds on my salary and my pan card is in operative and i also not file i. tax return then i. tax department can take against on me??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 May 2024 1. Not liable for deduction.
2. Yes, possible in future.

Keyur

Keyur (Querist)
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30 May 2024 Thank you sir for prompt reply to me.

In case of 1st question- in Company's TDS on Salary Return- default generated due 5 employee's pan card is in operative and tax payable @ 20 % tax around 6 lacs?? why such default is generated in company's tds return!!

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 May 2024 There would be TDs liability over some of the employees having inoperative PANs.

Keyur

Keyur (Querist)
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30 May 2024 So, we have to recovered from such employees in fy 2024-25??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 May 2024 It is the default of the employer. How to treat the loss depend upon company policy. There is no directive from ITD over it.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 September 2025 Good Luck..