LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

206AA

Ramya Kinthali (Financial Consultant) (108 Points)

10 March 2011

As per provisions of 206AA

If PAN of deductee is not available , deductor has liability to deduct tax at higher of following rate

a- rate specified in relvant in section

b- rate in force

c- 20%

can any one claerify with regard to follwoing...

what is the diff betwee "a" and "b"

Reply
Follow
Share

7 Replies

Srinivas (Finance & Accounts) (107 Points)
Replied 10 March 2011

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

1 Like

Samkit (Service) (114 Points)
Replied 10 March 2011

Pls read attached file

Source March 2011 CA Journal.

Attached File : 47 pages from 22084march11journal 2.pdf downloaded: 276 times

1 Like

MD.Taufique (CA,CS) (308 Points)
Replied 10 March 2011

Hi,

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

"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

1 Like

Pothuganty sudheer (Consultant, C.A, C.S) (411 Points)
Replied 11 March 2011

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

Expert opinions are welcome.

Best regards,

yashsaxena (Managing Director) (71 Points)
Replied 11 March 2011

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

thanks for sharing I got all the details . . .

Ramya Kinthali (Financial Consultant) (108 Points)
Replied 11 March 2011

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

balakrishna R (manager finance) (43 Points)
Replied 16 March 2011

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.