hello,
You all might be aware of the new guidelines from IT Dept. regarding quoting of PAN No. is made mandatory for any recepts of taxable payments.
In this regard i have some querys.
suppose if one has a deposit of Rs.49,000/- and he is getting monthly interest on that deposit @ say 12%PA , is Presenting PAN mandatory in this case ?
As earlier details of PAN has to be only furnished for transaction above Rs.50,000/-
Please clarify my doubt!
Regards
Santosh
As per the latest guidelines issued by the dept.,it is necessary to mention the pan number in taxable transactions. If the number is not mentioned, the payer has to deduct TDS @ 10% or 20% whichever is higher. this ultimately results in deduction of tax at a much higher rate than the specified rate.
| Originally posted by : Mrinal Gunjan | ||
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Agreed, I wanted to know weather is there any ceiling Limit for Quoting PAN, as It was earlier for Transactions above Rs.50,000/-?
Please clarify!
Thanx
Santosh |
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Higher TDS rate of 20% for not furnishing correct PAN - Requirement to furnish PAN is compulsory to deductor otherwise TDS shall be deducted at 20%.....W.E.F. 01.04.2010
wef 1.4.2010 higher tax or 20% tax will be deducted if not giving pan deatails and for wrong qouting 10000 penality will be imposed
| Originally posted by : Pradeep Sharma | ||
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Dear Santosh The celining limit is not change |
Thanx For the Replys, I am aware of the guidlines from ITD but Iam not getting specific clarification, ''The ceiling limit is not changed'' does this mean. If One has a Deposit of amount less than Rs.50,000/- In such case interest earned from that deposit, quoting PAN is not necessory Am I correct?
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Mandatory requirement of furnishing PAN in all TDS statements, bills,
vouchers and correspondence between deductor and deductee [New Section
206AA]
(i) The non-quoting of PAN by deductees in many cases have led to delay in
issue of refund on account of problems in the processing of returns of income
and in granting credit for tax deducted at source.
(ii) With a view to strengthening the PAN mechanism, new section 206AA has
been inserted to provide that any person whose receipts are subject to
deduction of tax at source i.e. the deductee, shall mandatorily furnish his PAN
to the deductor failing which the deductor shall deduct tax at source at higher
of the following rates –
(1) the rate prescribed in the Act;
(2) at the rate in force i.e., the rate mentioned in the Finance Act; or
(3) at the rate of 20%.
For instance, in case of rental payment for plant and machinery, where the
payee does not furnish his PAN to the payer, tax would be deductible @ 20%
instead of @ 2% prescribed under section 194-I. However, non-furnishing of
PAN by the deductee in case of income by way of winnings from lotteries, card
games etc., would result in tax being deducted at the existing rate of 30%
under section 194-B. Therefore, wherever tax is deductible at a rate higher
than 20%, this amendment would not have any consequence.
(iii) Tax would be deductible at the rates mentioned above also in cases where the
taxpayer files a declaration in Form 15G or 15H (under section 197A) but does
not provide his PAN.
(iv) Further, no certificate under section 197 will be granted by the Assessing
Officer unless the application contains the PAN of the applicant.
(v) If the PAN provided to the deductor is invalid or it does not belong to the
deductee, it shall be deemed that the deductee has not furnished his PAN to the
deductor. Accordingly, tax would be deductible at the rate specified in (ii) above.
(vi) These provisions will also apply to non-residents where tax is deductible on
payments or credits made to them.
(vii) Both the deductor and the deductee have to compulsorily quote the PAN of the
deductee in all correspondence, bills, vouchers and other documents
exchanged between them.
(Effective from 1st April, 2010)
in all cases u have to qoute ur pan details as per new section206AA as simple as that
CAclubindia
