15 October 2012
dear sir, one of our employee comes in tax liability but do not have PAN number. (He applied for the same)... as we as employer we dedcuted his tax on normal tax slab (10%) now he resigned from here and still do not have Pan number, we paid Rs. 185000 . till date as his salary part. after rebate of travel allow and medical reimbursements.
as we deducted his tax every month on normal rates but Rs. 185000 does not come under tax slab. now i want to know that do we need to deduct his tax @ 20% in his full and final settlement. or we process his full and final without considering our deductions.
15 October 2012
Hello.. Your question not clearly explained.
If we talk only Rs 185000 without PAN then you should to deduct @20%.
And if the employee resigned from the company in mid or whenever within the year then you should deduct TDS till that months income including Full and Final income...i.e. you should to deduct TDS on Whole Income as on resigned date plus F&F amount.
You are saying that he doesn't have PAN and you are duducting TDS as well every month.
I hope u will understand or please make more clear your question.
CAclubindia
