20 November 2013
If the deductee(salaried employee) has not provided his PAN deductor has to deduct tax @ 20%. My doubt is that if the employee's total income is 250000 and he is not having a PAN, on which amount the deductor has to apply this 20 % rate, on 250000 or on Rs. 50000(after deducting the basic exemption limit)
20 November 2013
I request other experts to review their opinion. Please be advised that income tax department has clearly stated that tax shall be deducted at 20% on the whole of salary in case PAN is not available
22 November 2013
After providing the basic exemption the bal shall be chargeable @ 20%...reason being there is nowhere expressly provided that on gross amount (without giving benefit for exemption)20% shall be charged.
22 November 2013
Agree with the reply of Mr.Nikhil kaushik . . 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.. . . 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 . . TO make clear on this Kindly refer to Sec.206AA of the income tax act. . . Kindly refer to Circular suggested by Mr.Nikhil,,every year CBDT release one circular to guide how to deduct TDS on salary..it is that circular only and this circular will provide all about tds on salary..kindly refer to above circular
22 November 2013
As i said above tds is caluculated on taxable income.means.. . . ***salary income Less Chapter VIA deductions if any . . Refer Circular here . http://www.iiserbhopal.ac.in/PDF/Income%20Tax%20on%20salaries%20FY%202013-14.pdf . . model problem can be refered in 44 page . . Sec.206AA can be refered in para 4.8, which will be in 10th page
as we discussed on another query, I firmly avoid any litigation to the extent possible. Secondly the assessee will be able to claim the credit of such taxes once the TDS returns are revised.
We all as tax consultants should promote such penal provisions to help govt's goal better tax compliance.
22 November 2013
Ya agree but salaried person will fill the pinch of non availability of exemption so even if advise given still asseess will go ahead.
22 November 2013
There is no problem if individual get his PAN card . . not only here in banks and also in many places individual supposed to lose so much money if he is unable to show pan or obtain pan number . . so it is highly recommended to obtain pan,,no one will support person who is not obtained pan..because it is mandatory to file income tax return if his income exceeds basic exemption limit before taking chapter VIA deductions . . so mandatory to obtain PAN inorder to file returns..so all individuals recommended to obtain pan
22 November 2013
yes...but the non-availability of exemption is only for TDS purposes. For assessment and tax liability (once the PAN is acquired) exemption shall be available.
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