Compulsory Requirement to furnish PAN by employee (Section 206AA) | IT Circular 1/2019

Compulsory Requirement to furnish PAN by employee (Section 206AA) | IT Circular 1/2019

Mandatory Quoting of PAN and TAN:
[post_ads]
4.7.1 Section 203A of the Act makes it obligatory for all persons responsible for deducting tax at source to obtain and quote the Tax deduction and collection Account No (TAN) in the challans, TDS-certificates, statements and other documents. Detailed instructions in this regard are available in this Department's Circular No.497 [ F.No.275/118/87 -IT(B) dated 01.10.1987]. If a person fails to comply with the provisions of section 203A, he will be liable to pay, by way of penalty, under section 272BB, a sum of ten thousand rupees. Similarly, as per Section 139A(5B), it is obligatory for persons deducting tax at source to quote PAN of the persons from whose income tax has been deducted in the statement furnished u/s 192(2C), certificates furnished u/s 203 and all statements prepared and delivered as per the provisions of section 200(3) of the Act.

4.7.2 All tax deductors are required to file the TDS statements in Form No.24Q (for tax deducted from salaries). As the requirement of filing TDS certificates alongwith the return of income has been done away with, the lack of PAN of deductees is creating difficulties in giving credit for the tax deducted. Tax deductors are, therefore, advised to procure and quote correct PAN details of all deductees in the TDS statements for salaries in Form 24Q. Taxpayers are also liable to furnish their correct PAN to their deductors. Non-furnishing of PAN by the deductee (employee) to the deductor (employer) will result in deduction of TDS at higher rates u/s 206AA of the Act mentioned in para 4.8 below.

4.8 Compulsory Requirement to furnish PAN by employee (Section 206AA):

4.8.1 Section 206AA in the Act makes furnishing of PAN by the employee compulsory in case of receipt of any sum or income or amount, on which tax is deductible. If employee (deductee) fails to furnish his/her PAN to the deductor , the deductor has been made responsible to make TDS at higher of the following rates:
  • i) at the rate specified in the relevant provision of this Act; or
  • ii) at the rate or rates in force; or
  • iii) at the rate of twenty per cent.
[post_ads_2]
The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS. However, where the income of the employee computed for TDS u/s 192 is below taxable limit, no tax will be deducted. But where the income of the employee computed for TDS u/s 192 is above taxable limit, the deductor will calculate the average rate of income- tax based on rates in force as provided in sec 192. If the tax so calculated is below 20%, deduction of tax will be made at the rate of 20% and in case the average rate exceeds 20%, tax is to be deducted at the average rate. Health and Education cess@ 4% is not to be deducted, in case the tax is deducted at 20% u/s 206AA of the Act.

COMMENTS

Defence$type=complex$count=4$ico=1

7th CPC$type=list$m=0$cate=0$sn=0$rm=0$c=5

Name

'Aaykar Setu' mobile app,1,5th cpc,8,6th cpc,12,7th CPC,448,7th CPC Arrears,4,7th CPC Arrers,8,7th CPC Bunching of Stages,5,7th CPC Hindi News,17,7th CPC News,77,7th Pay Commission,240,Aadhaar,24,acpin,1,ad-hoc bonus,4,ad-hoc staff,1,additional hra,3,admit card,1,advance salary,1,AGEY,1,aicpin,12,aigdsu news,6,AIIMS,3,ailtc railways,8,aipr,3,Air Force,13,Air India,5,air india ltc 80 fare,4,Air Travel,11,Aircel,1,airf,21,Airlines,1,Airtel,4,alcohol policy,1,all india,5,Allowances,134,Amazon Ofers,1,Andhra Pradesh,1,Andhra Pradesh govt employee,1,anomaly committee,1,aoc,1,apar,4,app download,1,Apple iPhone,3,Assam,4,Assistant Jobs,1,Bank,37,bank da,5,bank holidays,1,Bank Policies,19,banknotes,1,Bihar,9,Bihar 7th CPC,3,bihar govt employee,2,Bollywood,4,bonous,1,bonus,6,breakdown allowance,3,Breaking News,139,BRICS,1,Bsnl,13,BSNLMRS Hospitals,1,budget,5,Business,84,ca exam pattern,1,Cabinet News,42,cadre restructuring,3,cadre review,16,CAG Report,3,capf,1,CAPO News,4,Career,56,career progression,1,casual labour,3,casual leave,3,cat Judgement,4,cat order,3,CBDT,13,CBEC,4,CBSE,7,ccs master circular,1,ccs pension rules,3,ccs rules,10,ccsrp rule,1,cda rules,2,cgda,34,cgegis table,7,CGHS,96,cghs agartala,1,cghs ahmedabad,1,cghs allahabad,1,cghs bengaluru,2,cghs bhopal,2,cghs bhubaneswar,1,cghs chandigarh,1,Cghs Chennai,1,cghs dehradun,1,cghs delhi,3,cghs guwahati,1,cghs hyderabad,1,cghs indore,1,cghs jabalpur,1,cghs jaipur,1,cghs kanpur,2,cghs karnataka,1,cghs kerala,1,cghs kolkata,1,cghs lucknow,1,cghs meerut,2,cghs mumbai,1,cghs nagpur,1,cghs patna,2,cghs pune,1,cghs ranchi,2,cghs shillong,1,cghs trivandrum,2,cghs uttrakhand,1,cghs Varanasi,1,chandigarh,1,chhattisgarh,1,child care leave,3,children education allowance,7,China,1,cisf,1,come & play scheme,1,compassionate ground appointment,5,Compensation Policy,3,Compensatory Leave,1,composite allowance,1,condiment allowance,3,Condiment expenditure,3,confedration,1,consatant attendance allowance,1,contract labour,7,Conveyance Allowance,3,cpao order,22,cpf,2,cpgrams,3,cpiiw,6,cpse,74,cpse employees,11,cpse guidelines,29,cpse pay revision,2,cpse pension,5,CPSEs Pay,20,Cricket,4,cris,3,CRPF,1,CS(MA) Rules,5,csd,2,csd price list,1,Current Affairs,308,cvc circular,2,d el ed,1,daily officiating allowance,3,dearness allowances,51,dearness relief,20,Defence,273,Delhi,2,delhi govt employee,2,delhi high court,1,dental doctor,2,dept of post order,63,deputation,3,deputation allowance,5,desw,2,desw order,5,disability pension,6,dlc,2,Doctor Jobs,15,doe order,34,doppw order,12,DoPT Order,150,dot order,10,Download MedWatch App,1,Download MyMSME App,1,Download MyMSME App Celebrating Yoga,1,Download NEW ITR FORM,2,Download Swachh Bharat App,1,dpe om,36,dress allowance,8,dress code,1,dst om,1,EC,1,echs,30,ecil,1,EDUACTION,77,Education,7,educational qualification,1,Egineer Jobs,1,Election Commission,2,Employment,6,Entertainment,2,EPFO,27,ESIC,5,eview committee for nps,1,EVM,1,Ex-Servicemen,6,exam,2,exempt from tax,1,expected da,14,extra work allowance,2,Extraordinary Pension,1,Facebook,8,fact jobs,1,Family Pension,106,FAQ,2,Featured,79,festivals,1,FIFA,1,File ITR,62,Fin Min Orders,76,Finance,9,fitment table,3,Fixed Medical Allowance,8,Flipkart,2,Football,3,forms,3,FREQUENTLY ASKED QUESTIONS ON GST,1,Games,12,Ganes,2,gazette notification,18,gdce instructions,3,gds,6,gds arrears,9,gds da,11,gds employees news,25,gds pay,15,gds report,18,gfr,1,GOI News,570,Goods and Services Tax,50,Goods and Services Tex,1,Google,10,government of karnataka,1,Govt Jobs,12,govt of assam,2,govt of assam pensioner,1,govt of assam staff,1,govt of chhattisgarh,1,Govt Project,324,Govt Staff News,1176,Govt Yojna,267,gpf interest rate,2,GPF Rules,12,GPRA,6,gratuity,6,group A,1,Group D,1,Gst,61,GST Rates Finder app,1,Hardship Allowance,1,Haryana Govt Employees,2,Haryana Govt order,2,hba rules,9,Health,27,High Court Judgement,3,high court order,2,hill area allowance,1,holiday list,14,Hollywood,2,honorarium,1,hpca,1,hr allowances,1,hra,3,HRA Allowances,39,iba,9,iba dr,3,ibps,2,icsil,1,ida cpse,15,income tax,63,independence day,1,India,3,India Post,19,Indian Airforce,56,Indian Army,77,Indian Navy,70,indian railway,10,IOCL Jobs,1,IRCTC,8,irms,3,irtsa,2,Island Special Duty Allowance,1,ISRO,1,iti ltd,1,ITR,65,j&k govt employees,4,j&k govt pensioners,1,Japan,1,Jharkhand,3,Jio News,8,jkssb,1,jnv,7,Jobs,54,Jobs News,116,karnataka,1,kerala,4,Kerala Govt Employees,4,Kerala Govt Pensioners,2,Kolkata,1,KVS,44,kvs pension,2,labour Bureau,7,larsgess scheme,3,Latest,993,ldce,3,leave rules,5,lic pay,2,life certificate,1,life time arrear,1,Lok Sabha,158,LTC,43,ltc 80 air fare,6,Ltd Company Jobs,2,mAadhaar App,2,macp,40,Make in India,2,Market,1,Maruti Suzuki Dzire,1,maternity benefit act,2,maternity leave,7,medical card,3,Medical claims,4,Meghalaya Govt Employees,1,MERIT app,1,mes,1,MGNREGA,2,mha,2,mhfw order,14,mhrd order,4,Microsoft,1,Microsoft News,1,minimum wages,8,mod order,20,mohfw order,5,monetary allowance,3,MP,1,msp,2,mtnl,2,mutual transfer,1,NABARD,1,nac meeting,1,Namami Gange,5,National,705,ncjcm,24,nda,2,ndmc,1,New Delhi,3,new TRCA matrix,5,nfir,66,NGT,1,night duty allowance,2,northern railway,1,Notification,1,npci,1,nps,45,nps updates,9,ntpc,1,nursing allowance,2,nursing perssonsel,2,NVS,11,odisha,3,odisha govt employees,1,odisha govt pensioner,1,operation theater allowance,1,ordnance factory,1,orop,17,overtime allowance,8,PAN,6,pass rules,5,Passports,1,patna high court judgement,1,pay fixation,23,pay revision,1,pay slip,1,pbor,1,pcda circular,49,pco allowance,2,pda lists,1,pdca circular,8,Pension,236,Pension Adalat,2,Pension Adalat Application Form,3,Pension faq,21,Pension revision,13,Pensioner,172,Pensioner associations,3,Pensioner Portal,12,pfrda,5,pgportal,3,pl bonous,12,PM Modi,26,PMAY,5,pmjay,1,PMUY,1,PMVVY,1,Policies,407,Politics,36,post graduate allowance,1,post office,3,prcp in railway,5,pre-2016 pensioner,2,President,2,Project Allowance,2,Promotions,26,Promotions policy,30,provisional pension,2,puducherry,1,Railway,426,Railway Recruitment,3,railway servants pass rules,1,rajasthan govt employees,2,rajasthan govt pensioners,1,rajbhasha,2,Rajya Sabha,39,Rashtriya Swasthya Bima Yojana,1,ration money allowance,2,RBI,11,re-enengagement,1,Real Madrid,1,Recruitment,8,recruitment rules,13,relhs,1,remote area allowance,1,remuneration,1,RERA Act,1,reservation criteria,18,rest rules,1,Result,5,retention of railway accommodation,1,retired saffs,1,retirement age,4,retirement benefits,2,review committee for nps,6,revised pay,33,revised pay matrix table,5,revised pension,4,revised vda,8,rilways,1,risk and hardship allowance,9,RS (RP) Rules,2,rsrp rules,2,running allowance,1,running staff,6,RUSA,1,s,1,SAARTHI App,1,SBI,11,SBI Rules,6,scholarship,1,Science,17,scova meeting,3,settlement form,1,SEVA App,1,Seventh Central Pay Commission,149,SKILL INDIA Mission,1,small saving scheme,3,special allowance,4,Special LC Gate allowance,1,Sports,16,ssc jos,1,status of PPOs,4,storekeeping staff,1,strike,6,study allowance,1,study leave,1,Sukanya Samriddhi Account,2,Supreme Court,22,Supreme Court Judgement,17,Survey,1,syllabus,1,syndicate bank,1,Tarang Sanchar,1,Tax,22,tds deduction,40,teacher jobs,6,Tech,34,Telangana,1,telangana govt employees,1,Telcome,2,Telcome News,8,timely disposal of applications,1,TN Govt Employees,4,TN Govt Pensioners,3,tnusrb recruitment,1,Trade,1,trade unions,1,TRAI,1,training allowance,3,Transfer policy,28,transport allowance,4,Travelling Allowance,22,Trending Now,131,tripura govt employees,2,tripura govt pensioner,1,Trump,1,uan,1,Uber,1,ugc,1,uidai,2,UJALA Scheme,1,UP CM Yogi Adityanath,2,UP Govt Employees,1,upgradation of pay,2,Upper Caste reservation,4,uppsc,1,UPSC Jobs,2,USA,2,Uttar Pradesh,3,vrs,2,WB Govt Employees,1,Weather,2,West Bengal,1,Whatsapp,2,Windows 10 OS,1,World,62,World Press Freedom Day,1,You Tube,2,
ltr
item
Param News: Central Government Employee News|Latest DOPT OM: Compulsory Requirement to furnish PAN by employee (Section 206AA) | IT Circular 1/2019
Compulsory Requirement to furnish PAN by employee (Section 206AA) | IT Circular 1/2019
Section 206AA in the Act makes furnishing of PAN by the employee compulsory in case of receipt of any sum or income or amount, on which tax is deductible, Mandatory Quoting of PAN and TAN,
Param News: Central Government Employee News|Latest DOPT OM
http://www.paramnews.com/2019/02/compulsory-requirement-to-furnish-pan.html
http://www.paramnews.com/
http://www.paramnews.com/
http://www.paramnews.com/2019/02/compulsory-requirement-to-furnish-pan.html
true
2671314941044517342
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy