Income Tax Department 20 percent Salary Cut via TDS who do not have PAN card or Aadhaar card or updated
The Income Tax Department has once again revealed to all the company's owners that PAN Card not updated 20 percent Salary Cut i.e TDS (Tax deduction at source) should be paid while paying tax amount of up to 20% or higher to employees who do not have PAN card or Aadhaar card.
The Central Direct Tax Board issued a circular last week to this effect.
According to the Income Tax Act, employees are required to provide their PAN Card details to the owners/companies. If not provided, the amount of the 20% but not more than the applicable rate in the law shall be deducted from them in the form of tax.
With the coming of the end of the latest year, the companies are preparing the calculations. It is in this context that the announcement comes.
Employees who are generally less than 20 percent of their salary will be taxed up to 20 percent of their salary if they do not provide a PAN or Aadhaar number. If the same 20% goes beyond slab, then the same will be deducted and 4% will be charged for health and education cess.
The government has been working on rectifying deficiencies since the tax targets were not met this year. The circular was issued to aware the public to update the details at their own risk. If the owners do not follow these TDS rules, they will be penalized.
The Central Direct Tax Board issued a circular last week to this effect.
According to the Income Tax Act, employees are required to provide their PAN Card details to the owners/companies. If not provided, the amount of the 20% but not more than the applicable rate in the law shall be deducted from them in the form of tax.
With the coming of the end of the latest year, the companies are preparing the calculations. It is in this context that the announcement comes.
Employees who are generally less than 20 percent of their salary will be taxed up to 20 percent of their salary if they do not provide a PAN or Aadhaar number. If the same 20% goes beyond slab, then the same will be deducted and 4% will be charged for health and education cess.
The government has been working on rectifying deficiencies since the tax targets were not met this year. The circular was issued to aware the public to update the details at their own risk. If the owners do not follow these TDS rules, they will be penalized.
Telangana
Tuday
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