02 April 2010
Rate of TDS in case PAN is not furnished is governed by Section 206AA. The said section applies to all cases of TDS, including TDS on salary, ie. Section 192.
Hence, TDS on salary shall be deducted at normal rate or 20%, whichever is higher, if PAN not furnished.
02 April 2010
Rate of 20% or the normal rate, which ever is higher.
In case of salary, the rate of tax is to be arrived at by way of computation. The ratio of tax deductible to Net salary should be taken as normal rate. The higher of this normal rate 20% will be applicable for the purpose of withholding tax.
In my view, the rate of TDS upto taxable salary of Rs. 1600000/- shall be 20%. Normal rate in excess thereof.
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