Hello!
An employee does not have PAN and would draw salary above Rs. 250000/- during this financial year (2014-15). The employee has projected Rs. 81000/- to be paid towards housing rent during this financial year.
1. Please clarify whether this projection can be considered for deduction u/s 10(13A) in the absence of PAN.
2. If not, what will be the rate of tax to be deducted.
Thank you in advance
Ronald S. Jones
Hi
Yes, you can consider projections. however he wont get basic exemption of Rs. 2.5 lcs & TDS will be applicable only 20%, dont deduct 3% cess.
Thanks
so if annual taxable income is 330000 & investment u/s 80C is 50000 then tds @ 20% to be deducted on Rs. 280000 & not on Rs. 30000(330-50-250).
Thanks
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