Tds u/s 206aa - education cess

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2012 In case employee does not furnish PAN and TDS is to be deducted u/s 206AA @ 20%, then whether the education cess & secondary & higher education cess would be applied on the rate of 20% or 20% flat rate is to applied without any education cess thereon.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 June 2012
Education cess is imposed by sub-sections (11) and (12) of section 2 of the Finance Act, 2010 wherein one fails to find out a reference of section 206AA. Consequently,the rate of 20 per cent under section 206AA cannot be increased by surcharge and education cess.

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