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
Yogesh Agarwal
(Expert)
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Nursery business
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
