is it mandatory for employer to verify employee's PAN?
CMA Ramesh Krishnan
(Cost & Management Accountant)
(71474 Points)
Replied 09 June 2013
Yes. It is deductor responsiblity before deducting & making the tds payment, whether deductee got the valid PAN number
CA. Kunal Lakhotia
(ACA)
(1006 Points)
Replied 10 June 2013
any source for the same..any Section or Rule?
CA. Kunal Lakhotia
(ACA)
(1006 Points)
Replied 10 June 2013
i know this madhavi, but i need a source from where this is lawful.
any instruction or something?
CA Krishna Chaitanya M
(Chartered Accountant)
(463 Points)
Replied 12 June 2013
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.
shiv shankar rawat student CMA
(Manager)
(263 Points)
Replied 12 June 2013
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
Vishal
(Student)
(154 Points)
Replied 25 June 2013
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.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
