Tds on salary not furnished pan

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MANASH DAS (Querist)

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)

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)

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)

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)

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 ???