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No Pan

TDS 444 views 2 replies

mazharpatel

service

40 Points Joined October 2007

It is been stated that "A new provision relating to tax deduction at source (TDS) under the Income Tax Act
1961 will become applicable with effect from 1st April 2010. Tax at higher of the prescribed
rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account
Number (PAN) of the deductee is not available."

My question is what is the rate of TDS to be deducted for no pan-> whichever is higher of (at higher of the prescribed rate or 20%) or whichever is lower or is it straight 20% as been given to understand?

Attached File : 29 tds20percent.pdf downloaded: 138 times

Replies (2)

CA.Dheenadayalan.R

Chartered Accountant

156 Points Joined August 2007

Its only 20% whatever the case may be.

CA Uday Bhan

Manager Internal Audit

49 Points Joined November 2009

Dear Friend,

It means it should not be minimum from 20%. In other words TDS should be deducted higher than 20% in case of deductee not provided PAN to deductor if applicable rate are higher. TDS rate 20% not applicable sraightly it may be higher than 20%.

Hope you convinced.......!

Uday