Tds

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is it mandatory for employer to verify employee's PAN?

Replies (7)

Yes. It is deductor responsiblity before deducting & making the tds payment, whether deductee got the valid PAN number 

any source for the same..any Section or Rule?

A photocopy of PAN card is generally obtained from the employee by the employer before tax deduction is made & kept on record. Naturally, Its employer's responsibility to deduct TDS against that PAN.

 

i know this madhavi, but i need a source from where this is lawful.

any instruction or something?

Intimation of correct PAN as per sec 139A(5A) is duty of deductee, if wilful intimation of incorrect pan number by deductee, then deductee shall be liable to penalty of 10000 Rs. as per sec. 272B(2), so it is the duty of deductor receive photo copy of pan card of deductee as a proof of evidence.

Dear Kunal

no any specific rule is availble for this.

But it's co liability to dedcute the TDS angst the salary of their employee and give a correct information to IT Deptt .

Rgds

S.S.Rawat

Hi there,

Relevant Text of Circular No. 8/2012 [F.NO. 275/192/2012-IT(B)] Dated 5th October, 2012 Where PAN is not available in the case of Salary

COMPULSORY REQUIREMENT to FURNISH PAN by EMPLOYEE (Section 206AA):

Section 206AA in the Act makes furnishing of PAN by the employee compulsory in case of receipt of any sum or income or amount, on which tax is deductible. If employee (deductee) fails to furnish his/her PAN to the deductor, the deductor has been made responsible to make TDS at higher of the following rates:
(i) at the rate specified in the relevant provision of this Act; or
(ii) at the rate or rates in force; or
(iii) at the rate of twenty per cent.
The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS. However, where the income of the employee computed for TDS u/s 192 is below taxable limit, no tax will be deducted. But where the income of the employee computed for TDS u/s 192 is above taxable limit, the deductor will calculate the average rate of income-tax based on rates in force as provided in sec 192. If the tax so calculated is below 20%, deduction of tax will be made at the rate of 20% and in case the average rate exceeds 20%, tax is to be deducted at the average rate. Education cess @ 2% and Secondary and Higher Education Cess @ 1% is not to be deducted, in case the TDS is deducted at 20% u/s 206AA of the Act.

TDS Software

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