TDS on Inoperative PAN for Salary

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Accounts
21 Points Joined July 2008

Salary Income Rs.8.00  Lakhs for an employee

Employee having inoperative PAN due to non linkage of Aadhar.

TDS to be applied  on Rs.25,000/-  ( Rs.8.00 Lakhs - Rs.7.75 Lakhs ) or on Rs.8.00 Lakhs

 

 

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On 28 May 2025 at 09:27 Report
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Master in Accounts & high court Advocate
8821 Points Joined December 2011

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.

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On 28 May 2025 at 09:44


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