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TDS- How to get PAN from Deductees

TDS / TCS 2664 views 11 replies

As per the law, it is mandatory to quote PAN of the dedutees on Quarterly TDS Statements. In some cases as noted below the deductee may not be giving his/her PAN - what is the remedy. Is the payer authorised to withhold the future payments.

- Payment of taxable pension to employees retired 3-4 years back.

- Payment to contractors where PAN was not taken earlier.

Replies (11)
AS PER THE INDIAN INCOME TAX ACT 1961 PAN IS MANDATORY FOR ALL TDS PAYMENT AND IF DEDUCTEE HAS NOT PAN THAN HE/SHE HAS TO APPLY FOR IT IN FROM NO 49A
For the purpose of Tds Return only 70% pan no. required for 26Q & 90% for 24Q.
Dear Ashish Rampara, the problem of manish is not that how can deductees get pan. The problem is that they are not Intimating their PAN as required by law. As per the IT Act this is an offenses for which there is a provosion of penalty of Rs.10,000/-. The deductors are also liable for same amount isf they donot quote deductee's PAN. Mr Kalyan Rao has noticed real problem and given useful suggestion, thanks. Yet, the theme of question is that : Has the deductor been given any right to force the deductee to make him to intimate his or her PAN? Can he withold the payments due to such dedctees to force for this? Can the IT deptt impose penalty on deductor if he continues to make payment in absence of PAN? I am also interested on the subject. Please suggest.
Gentlemen,As PAN Is mandatory .What for you are waiting.Don't pay unless u get PAN No. of Party/Employee.
It is mandatory to quote PAN. If the deductee does not provide then I suggest you to withhold the payment, till he provides.
I also suggest to withhold the payment.Otherwise Deductor will be defaultee under Income Tax Act.
The best course of action is to draw the attention of the payee to the penal provision. Most of the payees would promptly intimate PAN. One could also obtain information like Full name, Father's name (in case of individuals), Date of Birth, Date of incorporation etc. and search the PAN from Income Tax Web Site. If these do not work out, the option to withhold the payment is always there.
Thanks everybody. Mr Srivastava has suggested a very coool way - well, one should be gentle before witholding the payments. Thanks
AS you could see from latest ammendment in TDs for that 85 % for others and 95 % for salary deductees the problem can be solved or postponed in following manner : 1) Don't Deduct for persons who dont have pan 2) withhold payment who dont have pan 3) Then at present NSDL not worried if you file or not until it department in full swing for survey 4) Pay challon who have Pan in one challon and who dont have pan in other so that the Assessee will not be in default 5) Take letter from deductees why they dont want to give PAN and signature in all so that assessee safe so that avoid penalty

from deducttee

Originally posted by :Guest
" from deducttee "


 


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