Pan is not provided

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Avinash (Querist)
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04 December 2013 G,mrng. to all,
An employee who is not having PAN; his Gross income is Rs.4Lac he has deposited 1Lac under 80C, now his total income is Rs.3Lacs
My question is on what amount tax will be calculated
a) Rs.1Lac @20%
b) Rs.3Lac @20%
FYI, illustration given in Circular no. 8 dt:-10/10/201. if a person doesn't have PAN is not allowed for basic exemption limit of Rs.2Lac.

Thanking You,
Avinash

Ganeshbabu K

Ganeshbabu K (Expert)
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04 December 2013 in case of NO PAN and having taxable salary income more than basic exemption limit, then tds required to be done on total taxable salary income..
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to say clearly tds required to be done either at the 20% on total taxable salary income or tax caluculated as per normal rates as per Sec.192..tds required to be done where tax amount is more
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TO make clear on this Kindly refer to Sec.206AA of the income tax act.
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Ganeshbabu K

Ganeshbabu K (Expert)
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04 December 2013 Ans. so deduct tds @20% on 3 lakhs

As i said above tds is caluculated on taxable income.means..
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***salary income Less Chapter VIA deductions if any
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Refer Circular here
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https://www.iiserbhopal.ac.in/PDF/Income%20Tax%20on%20salaries%20FY%202013-14.pdf
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model problem can be refered in 44 page
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Sec.206AA can be refered in para 4.8, which will be in 10th page

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