No PAN card may cost 20% more tax
Financial Express, January 21, 2010, Page 2
fe Bureau, New Delhi
If you don’t have a permanent account number (PAN), be prepared for paying higher income tax at source from the next fiscal. According to a government notification, “Tax at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the PAN of the deductee is not available,” and the new provision will become applicable with effect from April 1, 2010.
All assessees will have to quote their PAN in their correspondences, bills, vouchers and other documents sent to each other. The finance ministry notification said all deductors should intimate their deductees to obtain and furnish their PAN so as to avoid TDS at a higher rate. Also, all non-residents in respect of payments or remittances liable to TDS will comply with the new norm. “All deductees, including non-residents having transactions in India liable to TDS, are advised to obtain PAN by March 31, 2010 and communicate the same to their deductors before tax is actually deducted on transactions after that date,” the ministry said.
Assessees who do not have PAN will also not get certificate from assessing officer about lower or no tax liability.
Financial Express, January 21, 2010, Page 2
fe Bureau, New Delhi
If you don’t have a permanent account number (PAN), be prepared for paying higher income tax at source from the next fiscal. According to a government notification, “Tax at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the PAN of the deductee is not available,” and the new provision will become applicable with effect from April 1, 2010.
All assessees will have to quote their PAN in their correspondences, bills, vouchers and other documents sent to each other. The finance ministry notification said all deductors should intimate their deductees to obtain and furnish their PAN so as to avoid TDS at a higher rate. Also, all non-residents in respect of payments or remittances liable to TDS will comply with the new norm. “All deductees, including non-residents having transactions in India liable to TDS, are advised to obtain PAN by March 31, 2010 and communicate the same to their deductors before tax is actually deducted on transactions after that date,” the ministry said.
Assessees who do not have PAN will also not get certificate from assessing officer about lower or no tax liability.
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