20% salary to be deducted as tax if PAN, Aadhaar not given | WeForNews | Latest News, Blogs 20% salary to be deducted as tax if PAN, Aadhaar not given – WeForNews | Latest News, Blogs
Connect with us

India

20% salary to be deducted as tax if PAN, Aadhaar not given

Published

on

New Delhi, Jan 24: Trouble and hardship is looming for those earning Rs 2.5 lakh per annum but have not provided PAN and Aadhaar details to the employer.

This is consequent to the Income Tax Department asking employers to deduct 20 per cent salary as Tax Deducted at Source (TDS) from all employees who fail to furnish PAN and Aadhaar details.

This rule was formulated by the Central Board of Direct Taxes (CBDT) and came into effect on January 16. The rule will be applicable to those who earn more than Rs 2.5 lakh per annum.

This rule is aimed at keeping a close eye on TDS payments and revenue earned by this segment. In the financial year 2018-19, revenue from this segment amounted to around 37 per cent of the total direct tax collection.

In its 86-page page circular, the CBDT has said employees have to quote PAN and Aadhaar details compulsorily as per the Section 206-AA of the Income Tax Act.

The circular reads: “Section 206AA in the Act makes furnishing of PAN or Aadhaar number, as the case may be, by the employee compulsory in case of receipt of any sum or income of amount, on which tax is deductible.”

The circular states that if an employee fails to provide these details, the employer is responsible to make deductions either at the tax rate on the employee’s salary or 20 per cent or above.

In case, the income is less than Rs 2.5 lakh per annum, no tax will be deducted.

After several deductions, if your salary attracts approximately 20 per cent tax, the TDS rate of 20 per cent will apply.

In case your salary attracts a 30 per cent tax rate, your employer will compute the average tax rate, i.e, employee’s total tax liability divided by total annual income. If the average tax rate turns out to be 20 per cent, the TDS would be 20 per cent.

However, employees will be exempted from paying education and health cess at 4 per cent rate in case the deduction made is at a higher rate.

The CBDT says the lack of PAN or Aadhaar details is creating problems in giving credit.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

15 + eleven =

India

Jamia video war gets murkier

The videos — and there are several of them — bear the date December 15, 2019. That is the day when there was a confrontation between the police and students and the police allegedly caned students inside the university library.

Published

on

By

Jamia Milia Students CAB Protest 4

New Delhi, Feb 18 : In a series of videos that have emerged over the weekend attempting to give a fresh narative to the Jamia violence, a new set released on Tuesday showed alleged rioters hurling stones from inside the Jamia Millia Islamia campus here, adding yet another dimension to the attritional war between students and police.

The video war is over what happened at the university on December 15, 2019, while students were protesting against the Citizenship Amendment Act (CAA)– with both sides pointing fingers at the other for provocating the violence that spilled all over the country.

The source of the videos and their authenticity could not be established by IANS.

The videos — and there are several of them — bear the date December 15, 2019. That is the day when there was a confrontation between the police and students and the police allegedly caned students inside the university library.

The new set of videos that emerged on Tuesday showed alleged rioters hurling stones from inside the university campus. The time shown on the videos indicate they were recordings of happenings that evening.

In one of the videos, people can be seen hurling stones from the central library gate, which has been in the news ever since the video war broke out.

Other videos that entered the public domain on Tuesday showed a large crowd entering what appears to be the hallway of the university’s central library. Many of them were seeing running inside the library. Some were seen carrying chairs as well.

Neither the university administration nor the police have commented on the authenticity of the latest videos that have entered the public domain.

Continue Reading

India

Plea on error in CBSE sample papers dismisses Delhi High Court

Published

on

By

CBSE

New Delhi, Feb 18 : The Delhi High Court on Tuesday dismissed a petition seeking rectification of errors in Central Board of Secondary Education (CBSE) Class 12 accountancy sample question papers and imposed a fine of Rs 25,000 on the petitioner.

The petitioner, named Ravinder Nath dubey, has been teaching accountancy for the past 26 years.

Asserting that accountancy examination is on March 3, the petitioner sought court’s direction to immediately remove eight fundamentally and conceptually wrong answers from the CBSE’s website.

“If the students write these wrong answers in the board examinations, the examiners may deduct 7-8 marks of students,” Dubey rued.

A bench of Chief Justice D.N. Patel and Justice C. Hari Shankar called the petition “frivolous” and imposed a hefty fine on him.

“You are not talking about an exam paper but sample papers. The model papers are for students’ practice,” the bench said.

When the petitioner retorted that he has come with a proof, the court said, “The fine can be increased. I don’t want to do it.”

Continue Reading

Cities

Those born in TN won’t be affected by CAA: Palaniswami

Palaniswami said those who were born in Tamil Nadu will not be affected by CAA.

Published

on

By

Edappadi K Palaniswami

Chennai, Feb 18 : Tamil Nadu Chief Minister K. Palaniswami on Tuesday said those who were born in the state would not be affected by the Citizenship (Amendment) Act.

Speaking in the Assembly, Palaniswami said the opposition DMK should explain who in Tamil Nadu would get affected by CAA.

Palaniswami said those who were born in Tamil Nadu will not be affected by CAA.

Continue Reading
Advertisement

Most Popular