Tds % pannotavbl

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preeti (Querist)
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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

Yogesh Agarwal

Yogesh Agarwal (Expert)
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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...

preeti

preeti (Querist)
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29 September 2012 Thanx for replying Yogesh,

This 20% is over and above 30% ?

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preeti

preeti (Querist)
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30 October 2012
Can any one tell me the % will be over and above 30%

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Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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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.

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