Quote your PAN Card Number mandatorily or attract 20% TDS !

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Starting from April 1, 2010, if your total income falls under any of the taxable slab, you are required to quote Permanent Account Number (PAN) in your financial transactions. Budget 2009-10 makes it mandatory to quote your PAN number in all correspondences with the tax authorities, a step taken to enhance transparency in the transaction and to ensure avoidance of tax evasion.

pan-card-mandatory

It is now mandatory for a taxpayer to quote his PAN number in the tax returns, bank deposits exceeding specified limits and mutual funds above a certain value among several other transactions which may demand PAN number quote of the party to the transaction.

Starting from FY 2010-11, Income Tax (IT) authorities could impose up to 20% of tax deducted at source (TDS) if the recipient of the income (including non-residents) fails to provide his PAN to the related deducting agency.

Currently, the regular rate of TDS under various different income heads ranges from 2% to 10%. If you do not furnish your PAN number – while filing the return or to the source of income deducting agency – you may now have to cough up to 20%.

The aim of the authorities, behind making PAN quote mandatory, is to ensure diligent disclosure and transparency of transaction on behalf of the tax payers, so that they can not render any unknown transaction as a secret which undergoes a tax-evasive step. The IT department has made it mandatory for employers to quote PAN of their employees while filing TDS returns.

Usually, an assessee pays tax in the assessment year on income earned in previous year which calls for a delay until the completion of the previous year. And, hence, TDS is deducted, at the source of the income itself, to recover such amount much earlier on certain notified nature and/or value of transactions such as Salary, Rental fee, Commission, Interest, etc.

The quote of PAN is also needed in all documents pertaining to transactions notified by the Central Board of Direct Taxes. The Finance Bill for 2009-10 says,

“The deductee (person from whose income tax is deducted), shall mandatorily furnish his PAN to the deductor failing which the deductor shall deduct tax at source at higher rates.”

If you do not have a PAN card as yet, its high time you do !

  1. arpita says

    If someone applied for PAN card and want to know their PAN card status, then you can know by various tactics. You can Know Your PAN by Date of Birth, by name and by acknowledged no.

  2. Ararpita416 says

    hi , you know people easy get into a trouble and go in the wrong way for pan card word , its so easy When you entering Pan name, you enter your name and middle name without any spaces.And also you check your pan card status by entering PAN card number from Pan Card Verification …. hope so you will get what you you need.

  3. Guruprasada Rao Ragi says

    I lost my PAN Card, how to get duplicate thereof.

  4. Guruprasada Rao Ragi says

    I lost my PAN Card, how to get duplicate thereof.

    1. tetan says

      Helloo Guruprasada Rao Raji
      you can apply a duplicate copy of pan card for the same pan no. along with the document in which u get the lost pan no.like (voter id,residential proof).And submit these with an agent.

  5. SUNITA says

    hello Viral
    iam a housewife , i was having a pan card with incorrect DOB . i want to correct it . i donn’t know what to do and apply for a fresh pan card . now i got a new pan card with new number recently . but someone told me this is illegal . is it so . if yes tell me what i do now . how can i surrender my new pan card and do correction in previous pan card .

  6. PRAVIN D says

    dear sir,

    i would like to know wheather there is a TDS on contractor rule for state of sikkim ?
    if yes than it is like other state of india only.

  7. Amar says

    Sir
    I hav applied for pan number twice n now i got the 2 pan number but not Pan cards. now wat should i do

    As per the government rules, it is illegal to have 2 pan numbers. Please guide me in this

  8. sakharpe arvind nagendra says

    want pan card number

  9. Kanishka says

    thanks viral for the prompt reply..yes, he needs my PAN no to qoute against my salary slip and have shown him the acknowledgement of the PAN application, but still he doesn’t give an reply and says that my joining would be counted from July and refuses to pay it with the month of July. is he correct? HR also doesn’t have a say in this due to unawareness of the correct rules.
    I have heard that generally companies keep the salary on hold in such situations, but it is not happening in this case.. please guide me.

    1. Viral says

      Hello Kanishka again…

      Firstly, I’m not an expert on this issue, as I’ve never been an employee in any firm before. So, don’t take my suggesionts on its face value, take it with a pinch of salt.

      Secondly, logically, as far as I understand, you’ve served your company for the whole month of June, so you’re entitled for your salary for that month.

      If your problem has not been redressed by the immediate people responsible for it or for that matter even HR department, knock the doors of senior management of the company directly, reach out to them personally.

      Thats what I do, when I’ve some problem in banking transactions with my banker. First, try to resolve my query with usual staff. If I’m not satisfied, I directly reach out to the bank’s Branch Manager.

      You’ve to take initiative to reach higher management. Don’t forget to take your PAN card application acknowledgement & other requisite documents while reaching to the higher management so that you dont waste their (and your own time too) time.

  10. Kanishka says

    I joined my company on 1st june and had applied for a pan card, but am yet to get the pan number. But, the office accountant says that i wont be getting any salary for june. anyone aware of the rules can tell me whether he is right or wrong? shudnt i get my salary for june clubbed with the pay of july?

    1. Viral says

      Hello Kanishka,

      Is it that your office accountant is denying you salary for the month of June saying that – they need your PAN number to quote against your salary slip?

      If yes, you can produce a copy of your application of PAN card as a proof that you didn’t had PAN number then, but you had applied for the same. So, preferably, your office should accept your application copy until, of course, you receive a PAN number for yourself.

      (This is just my personal opinion)

  11. tenzing norbu lama says

    my name is tenzing lama. and i am from sikkim….i recently joined american express ,gurgoan on the 26th of april 2010.Now we do not pay income tax in sikkim,and i have no pan number.I have came across this notification today and the employer did not inform me about this incident.My question is is it possible that my salary will not be deducted at 20% at tds……if i am what is the procedure to reedem the money….thanks..

  12. Pradeep says

    Ops!! they are trying anything and everything. But jokes apart this is a good move and also now a days PAN number are issued promptly by NSDL and UTI so no issues!!

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