Salary certificate

If employee refuses to provide his PAN, deduct his tax @ 20% from his gross salary because when the organisation files its TDS return in Form 24Q, mentioning PAN is mandatory or TDS must be deducted and deposited at flat 20% or more.

First calculate his taxable salary after deducting non taxable allowances from 26.09.15 to 31.03.2016 and then deduct and deposit TDS @ 20% on that amount ignoring any tax slab along with interest on it and revise the return.

Dear Randhir,

If employee is not providing pan then deduct tax @ 20%

U dont worry if he is taking an undue benefit as u just deduct the tax as per law.

Hope your query has been resolved  

Originally posted by : Randhir

I have joined a new concern ,which has only one person whose income falls in tax bracket , but the person is not giving his PAN number, nor providing his certificate of Income for the period ,prior to joining this concern.

He joined this concern on 26.9.2015 and he is drawing Rs.60000/-p.m.

Employer has provided him fully furnished accomodtion alongwith fooding.

The person has prepared a performa for his salary certificate in which he has bifurcated his salary

Basic Salary                                 27400

Dearness allowance                     14900

House rent allowance                    8200

Transportation Allowance              2000

Conveyance Allowance                  5000

Medical Reimbursement                2500

TOTAL                                         60000

Can anybody guide me to deal with this person who wants his salary certificate on his own terms and on half known facts.

I suspect that he is taking double benefit of deductions which he does not want to disclose.

Problem is this that he is on top seat of the organisation.

He is maintaing two four wheelers ,still he is producing house rent recipt of Rs.4680/-p.m. which is apparently doubtful.

Please advise the remedy.

Dear Ranadhir,

Further being agreed with ACA Mr. Anurag, while calculating taxable income you have to consider perquisites for free furnished accomondation provided to the Employee.

Regards