Due to non linking of pan and aadhar the pan has become inoperative. Does this rule applies to salaried person and are we required to deduct tds at higher rate on salary paid if the salary is below the taxable limit or not.
Replies (4)
Quick Summary
This discussion clarifies whether an inoperative PAN, due to a failure to link with Aadhaar, applies to salaried individuals. It addresses concerns about deducting TDS at a higher rate on salaries, especially for those below the taxable limit. The consensus is that if salary is below the taxable threshold, TDS isn't applicable. However, if TDS is liable, the employee must get their PAN reactivated. Standard deductions and 80C/80D benefits can be considered if the employee provides the necessary investment proofs.
If the salary is below taxable limit then TDS deduction will not apply. If liable for TDS deduction, get PAN activated by employee, otherwise the rule will apply.