High TDS for missing PAN

From 1st April 2010 income Tax of India is going to impose Extra % on TDS in case of missing PAN (Permanent Account No) in any financial transaction where TDS is involved.

PAN has to be mentioned in all financial transaction between two entities where TDS is involved , failing which the Tax deducting authority has to impose 20% levy over an above the normal applicable TDS rate. This will be implemented from next Fiscal as per notification of Central Board of Direct Taxes (CBDT). This new rule is applicable to NRI’s as well in respect of payment and remittances that attracts TDS.

As per the CBDT official The law needs, all deductees and deductors to quote PAN in all correspondences, Bills, Vouchers and any other documents exchange between each others. CBDT has advised all entities as well as Non Residents to obtain PAN by 31st March and communicate the same to the deductor’s to evade higher TDS.

It seems Govt has now set to reduce its revenue losses by putting stops in all the ways, faced by Huge Budget deficit.

In case you dont have a pan, read how you can get a pan for yourself or your business.


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