Tds % pannotavbl
This query is : Resolved
29 September 2012
What % of tds is deductable in case if Pan not avilable and employee is falling in 30% slab of Income Tax .
regards,
preeti
What % of tds is deductable in case if Pan not avilable and employee is falling in 30% slab of Income Tax .
regards,
preeti
29 September 2012
Hi Preeti...
In case of PAN not available TDS to be deducted @20% or at the prescribed rate... You should deduct at the higher of two....
Hope you are clear...
In case of PAN not available TDS to be deducted @20% or at the prescribed rate... You should deduct at the higher of two....
Hope you are clear...
29 September 2012
Thanx for replying Yogesh,
This 20% is over and above 30% ?
This 20% is over and above 30% ?
Message likes :
1 times
30 October 2012
Can any one tell me the % will be over and above 30%
Can any one tell me the % will be over and above 30%
Message likes :
1 times
27 July 2025
Hey Preeti! Here's the clarification on your doubt:
* When PAN is **not available**, TDS must be deducted at **20% or at the prescribed rate under the relevant section, whichever is higher**.
* This **20% TDS is NOT over and above the slab rate like 30%** — it is the rate of deduction at source on the payment.
* So, if the applicable TDS rate on that income (like salary or contractor payment) is lower than 20%, you deduct 20% because PAN is missing.
* It’s just a TDS deduction at source; the **final tax liability is computed when the person files their income tax return**, where the actual slab rate (30% in your case) is applied.
* If the TDS deducted is more than the actual tax liability, refund can be claimed.
**Summary:**
**TDS = 20% (if PAN not available) or prescribed rate (whichever is higher)**, NOT additional to the slab rate.
* When PAN is **not available**, TDS must be deducted at **20% or at the prescribed rate under the relevant section, whichever is higher**.
* This **20% TDS is NOT over and above the slab rate like 30%** — it is the rate of deduction at source on the payment.
* So, if the applicable TDS rate on that income (like salary or contractor payment) is lower than 20%, you deduct 20% because PAN is missing.
* It’s just a TDS deduction at source; the **final tax liability is computed when the person files their income tax return**, where the actual slab rate (30% in your case) is applied.
* If the TDS deducted is more than the actual tax liability, refund can be claimed.
**Summary:**
**TDS = 20% (if PAN not available) or prescribed rate (whichever is higher)**, NOT additional to the slab rate.
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