TDS on salary if PAN no. not provided

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Ramesh (Querist)
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11 October 2010 Please advise if Employee does not provide PAN No. how tds to be deducted. assuming he is falling under :
1. 10% slab
2. 20% slab
3. 30% Slab
Rgds,
Ramesh

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 October 2010 As per the recent amendments W.e.f 01/04/2010, on non-submission of PAN, Tax is to be deducted @ higher of prescribed rate or 20%.
case 1) TDS 20%
2) TDS 20%
3) TDS 30%

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Ramesh

Ramesh (Querist)
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11 October 2010 Thanks Sir. Tax will be deducted on total amount paid or on amount after exempting amount of Rs. 160000/-.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 October 2010 IN MY VIEW ON TOTAL AMOUNT. OTHERWISE A PERSON WORKING IN TWO COMPANIES CAN AVAIL LIMIT OF RS. 160000/- TWICE. VIEWS OF OTHER EXPERTS ALSO SOLICITED.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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11 October 2010 Agreed with Mr. Sanjay... In case NO PAN is provided, TDS should be deducted @ applicable slab rate or 20 % , whichever is higher.

& while taking this rate, you should not allow any IT benefits..i.e it should be flat @ 20 or 30 % , whichever is applicable..

taxindiaconnect

taxindiaconnect (Expert)
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11 October 2010 The amount of tax shall be deducted after providing the benefit of threshhold limit as the the income below threshhold limit is not taxable at all, hence shall not be subject to tax at all.