Dear All
Section 206 AA of Income Tax Act specifies deducation of Tax at 20% on income where payee did not provide PAN Number. In this regard, I would request clarifications on following points:
Section 194 C, 194 H, 194 I, 194 J etc., specifies limits beyond which tax needs to be deducted. For example Sec 194 C specifies TDS needs to be deducted if any single payment exceeds Rs.30000 or in a year cumulative payment exceeds Rs.75000. Hence, while deducting TDS under Sec 206 AA, whether this limits must be considered, if the payee did not provide PAN Number or TDS at the 20% has to be deducted from the first payment irrespective of the volume of payment?
Thanks in advance for your clarification.
S.R. Narasimhan
CAclubindia
