TDS on non submission of PAN Number

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parag (Querist)
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07 April 2010 Dear Expert

w.e.f. 1st April, 2010, if any one is not submitting is PAN number then TDS to be deducted @20% maximum rate. In this regard, my question is that whether this applicable on crossing of threshold limit of particular section or regarless of the amount, we have to deduct TDS at 20%? For example threshold limit under section 94C is Rs. 50,000/- per annum and we will make payment to contractor in agreegate Rs. 25,000/- per annum and he don't have PAN No. then we should deduct TDS at 20% or not? please replay. I will be very thankful to you.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 April 2010 THIS RULE IS APPLICABLE ONLY ON CROSSING THE THRESHOLD LIMIT.
IF YOUR ANNUAL PAYMENT IS ONLY RS. 25000/- (AND NOT SINGLE PAYMENT) YOU ARE NOT REQUIRED TO DEDUCT TDS EVEN IF HE DONT HAVE PAN. BUT KEEP THE BILLS PROPERLY.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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07 April 2010 Dear Parag,

Good Question .
Threshold limit for one single transaction is Rs.20000/- and Transaction less than Rs.20000 is agreegating to Rs.50000/-
FOr non-submissison of PAN, 20% Tds will be deducted only when threshold limit cross. i.e if payment is made 25000 for single bill and Pan no is not provided then TDS will be deducted @ 20%