TDS on salary/wage payment without PAN

If salary is below than exemption limit than no need to deduct tds on salary…

hey no need to deduct tds if inome below exemption limit nd if income higher than Rs.160000 than deduct and if PAN is not available than section 206AA applicable........

thanks for your response, but pls refer an aricle in CA journal march.2011 issue in regard "to requirement to furnish PAN U/s 206AA of IT act.1961 "-  not able to conclude which is correct. 

Originally posted by : Ram Thakkar
	hey no need to deduct tds if inome below exemption limit nd if income higher than Rs.160000 than deduct and if PAN is not available than section 206AA applicable........

Employee whose salary is more than exemption limit is mandatory to give PAN to employer otherwise its not mandatory….

no tds if salary income below exemption limit. Income above exemption limit,(upto rs.5 lakhs) 20% is applicable only on excess of income above exemption limit as the incidence of tax u/s. 192 is only on income above exemption. 20% rate has be compared with rates in force. sec206AA does require to calculate average rate. Rate can be compared only if the base to which they are applied is same.If we apply 20% on income inclusive of exemption, we land in situation where marginal tax payers like pensioners (senior citizens) will be penalised more than other high income tax payers. In case of persons with high income there will not be any penalty as tds amount as per rate in force will be more than applying 20% on income inclusive of exemption limit. This can not be the intention of legislture.