TDS on Inoperative PAN for Salary

TDS Applicability - *Inoperative PAN*: Due to non-linkage of Aadhaar, the PAN becomes inoperative, and TDS rates are affected. -

 *TDS Rate*: As per Section 206AA of the Income Tax Act, if the PAN is inoperative due to non-linkage with Aadhaar, TDS would be deducted at a higher rate of 20% instead of the normal slab rates.

TDS Calculation -

 *TDS on Entire Amount*: TDS would be applicable on the entire salary income of ₹8.00 lakhs, not just the amount exceeding ₹7.75 lakhs. - *TDS Amount*: The TDS amount would be calculated at 20% of ₹8.00 lakhs..

 Conclusion Given the inoperative PAN due to non-linkage with Aadhaar, TDS would be deducted at a higher rate of 20% on the entire salary income of ₹8.00 lakhs.