Manner of calculation of demand iro inoperative PAN

In accordance with provisions of section 206AA, in case of Inoperative PAN, tax is deductible under Chapter XVIIB at higher of the following rates-

As per law, its OK, but question is that how the tax amount of Rs. 88,918/- is calculated on income of Rs. 5,69,590/-.

Thanks

It would be difference amount of total tax minus already tax deducted.

Dear Avinash, From the notices with respect to inoperative PANs the tax is calculated at the average rates. i.e applicable tax slab rate for the income and 20% higher rate. The same is adopted in your scenario as well adding up interest under section 234B and C.