The Finance Ministry has tightened the norms for filing tax deduction at source (TDS) and tax collection at source (TCS) returns.
The Central Board of Direct Taxes (CBDT) has now enhanced the threshold limit for PAN quoting, without which TDS/TCS returns would not be accepted.
As against the earlier specified norm that required TDS returns on salaries to have at least 90 per cent Permanent Account Number (PAN) data, it has now been decided to raise this threshold limit to 95 per cent.
For TDS returns on payments other than salaries and also for TCS returns, the threshold limit has been enhanced to 85 per cent from 70 per cent.
The enhanced limits will be applicable for and from the quarter ending March 31, 2008. These threshold limits will also apply to all those TDS/TCS returns which are filed for any of the earlier quarters on or after April 1, 2008, a CBDT release said.
The CBDT has now advised tax deductors and tax collectors to obtain the correct PAN data of all deductees and quote the same in their TDS/TCS returns.
The Finance Ministry has also advised tax deductees to furnish their correct PAN data with their deductors failing which they will not only have difficulty in getting the credit of TDS/TCS in their assessments but would also have to face penalties under the income tax law.