News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
News Headlines »
 5 incomes you must not miss to report in your Income Tax Return for AY 2019-20
 How to File Income Tax Returns aka ITR Online in India
 Will a new direct tax law push up compliance?
 How To Verify Income Tax Return (ITR) Without Login To E-Filing Account
 How to file ITR on the e-filing lite portal
 Income Tax department launches new way of making e-verification ITR filing
 Have you filed your income tax return correctly? Find out
 How to rectify mismatches between Form 16 and Form 26AS ITR filing
 How to fill ITR-1 form ITR filing 2019
 8 common mistakes to avoid when filing ITR
 How to calculate and report LTCG gains in ITR-2 for FY 2018-19

TDS doubles, if you fail to bring-up your PAN
October, 05th 2010

If you run a glance through your pay slip, you will come across something called TDS, which is tax deduction at source. In most cases, the employer deducts this amount at the time of payment of salary itself and pays the total tax amount to the government on behalf of all the employees. If you are a self- employed or practising professionals, you have to pay this amount yourself.

Tax deducted at source is one of the modes of income tax collection by the government. Under the income-tax laws, income tax at specified rates is required to be deducted while making certain payments.

The rate of deduction of tax at source on interest and rent payment is 10%. For salary payments, the employers deduct income tax at source on a monthly basis after computing income tax liability on estimated annual taxable income of the employee. Tax benefits on housing loan, investments, etc are considered while estimating annual taxable income.

If the PAN card number is not furnished to the person making payment, the rate of deduction of tax increases to 20%. However, if the actual rate of deduction on salary is higher than 20%, then the tax on salary deducted at source is at such higher rate.

The deductor issues a certificate in Form No 16 or 16A to the payee, which forms a basis for claiming credit for tax deducted while filing income tax return. One should also check his Form 26AS (which can be accessed from NSDLs website) to cross-check if the TDS amount as mentioned in Form 16 or Form 16A is tallying (tying) up with the TDS amount against the PAN card as per the income tax departments records.

If the total amount of TDS for a year is higher than your actual tax liability, a refund of excess tax deducted can be claimed by filing a return of income.

One can furnish a declaration in form 15G for non-deduction of income tax at source on interest income. Only those who expect their taxable income of the year to be below the basic exemption limit are eligible to furnish Form 15G. Non-residents cannot furnish form 15G. Senior citizens can furnish Form 15H instead of form 15G.

In other cases, an application is made to the income tax officer (in Form No 13) to issue a certificate of non-deduction of tax (or for deduction of income tax at a rate lower than the prescribed rate).

If PAN card no is not furnished, then rate of TDS doubles to 20% from 10%.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions