Tds on salary not furnished pan

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MANASH DAS (Querist)
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13 August 2015 ER pays salary of Rs. 11L to EE who has not furnished his PAN to ER. TDS on salary will be as follows for AY 2015-16:

Upto Rs. 2.5L- Tax NIL
above Rs. 2.5L but upto Rs. 5L-Tax Rs.50,000/
above Rs. 5L but upto Rs. 10L-Tax Rs.1,00,000
above Rs. 10L but upto Rs. 11L-Rs.30,000/-

So, Income Tax(ignoring SC & Cess) comes to Rs. 1,80,000/-

Please correct me if I'm wrong ...

PRATIK AGRAWAL

PRATIK AGRAWAL (Expert)
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13 August 2015 No, it will be higher of :
1) 20% of the payment (20% of 11 Lakhs whihc is 2.2 lacs
2) or rates specified in IT (1.8 lcas)

So Rs. 2.2 lacs needs to be deducted

MANASH DAS

MANASH DAS (Querist)
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13 August 2015 So, u meant to say that tax @10% or 20% on salary upto Rs. 2.5L (max. exemption limit) will be charged in case PAN not furnished by EE ???

PRATIK AGRAWAL

PRATIK AGRAWAL (Expert)
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13 August 2015 No, I did not mean to say that.

I meant if PAN is not furnished deduct @ 20% on total payment or the rates as per the slab whichever is higher.

Hope it clarifies.

MANASH DAS

MANASH DAS (Querist)
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13 August 2015 I agree with u, but CBDT circular no.17/2014 dated 10/12/2014, at page-50, example no 7, confused me while it shows TDS on total income of Rs. 11L @20% is Rs. 1.6L i.e. [(11L-3L)*20%] for senior citizen.

Also clarify whether SC & Cess @3% is to be added on 20% tax ???