Income tax alert: PAN and Aadhaar data won’t be given 20 p.c wage

by Jeremy Spirogis
Income tax alert: PAN and Aadhaar information will not be given 20 percent salary

If you haven’t given the main points of Aadhaar and PAN card to the Income Tax Department, then it may possibly put you in bother. It's these
It can also be for many who are incomes 2.5 lakhs per 12 months. Earlier, the Income Tax Department had mentioned that if you don’t present details about your Aadhaar and PAN, then 20 p.c of your wage will likely be deducted. This rule was ready by the Central Board of Direct Taxes (CBDT) and got here into pressure on 16 January. This rule will apply to those that earn greater than 2.5 lakhs per 12 months.

This rule is geared toward protecting a detailed watch on the TDS funds and income earned by this part. The income from this part was about 37 p.c of the whole direct tax assortment within the monetary 12 months 2018-19. <! –

                 CBDT has acknowledged in its 86-page web page round that staff must mandatorily present PAN and Aadhaar particulars as per Section 206-AA of the Income Tax Act.

The round states that "PAN or Aadhaar number will have to be submitted as per section 206AA. The circular states that if an employee fails to provide these details, the employer will pay 20% or above on the employee's salary." Will be deducted on the tax price. No tax will likely be deducted for lower than 2.5 lakhs per 12 months.

If your wage attracts about 20 p.c tax, then the TDS price of 20 p.c will apply. CBDT says that lack of PAN or Aadhaar assertion is creating issues in giving credit score.

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