206AA

Hi,

"a" represents the rate which specified in the act for each section such as 194c, 194j...etc.

"b" represents the Lower rate of deduction. For example a company/firm had obtained a Lower Deduction Certificate from the concerned Assessing Officer then the deductor have to deduct at that lower only which specified in the Lower Deduction Certificate issued by the Assessing Officer/Income Tax Dept.

"c" represents the Higher rate. presently i.e.20% is applicable for which do not have PAN.

Hope the above info. will serve your query.

-B.Srinivas

Pls read attached file

Source March 2011 CA Journal.

Hi,

"a" represents the rate which specified in the act for each section such as 194c, 194j...etc.

"b" represents the Lower rate of deduction. For example a company/firm had obtained a Lower Deduction Certificate from the concerned Assessing Officer then the deductor have to deduct at that lower only which specified in the Lower Deduction Certificate issued by the Assessing Officer/Income Tax Dept.

"c" represents the Higher rate. presently i.e.20% is applicable for which do not have PAN.

Hope the above info. will serve your query.

-B.Srinivas

aGREE WITH HIM

I agree with the views posted. But i feel 20% would be higher in most of the cases.

Expert opinions are welcome.

Best regards,

Originally posted by : Samkit
	Pls read attached file Source March 2011 CA Journal.

thanks for sharing I got all the details . . .

@ samkit......  tat file was very informative... got some new points from it.... thanks for sharing it...

Refer to the article march 2011 issue CA jounal -  Is 206AA appilcable for payment salary/wage below taxable limit- (Rs.160000/-)?. Is PAN reuired for those workers/staff whose wage or salary below taxable limit.