PAN AADHAAR NOT LINKED TDS DEDUCTED @ 20%

 

Adv Shahdab Khan                                                                                                 S K & Associates

If PAN is not linked with Aadhaar or is inoperative then the TDS should be deducted at a higher rate @ 20% from 01st July-2023.

 

What are the consequences if the PAN is not linked with AADHAR?

a) Employees - whose taxable income is between Rs. 250000 - Rs. 500000 and are in the tax bracket of 5% - TDS will be deducted @ 20% instead of 5%. Employees whose taxable Income does not exceeds Rs. 500000/- they are entitled for Section 87A rebate and balance Tax will be recovered from their Salaries.

b) Consumers – Interest paid/credited in excess of Rs. 5000/- on Security deposit is subject to TDS @ 10% u/s. 194A. If they do not link their PAN with AADHAR TDS will be deducted @ 20%. Similarly, TCS will be collected at higher rate as per provisions of Section 206CC which is @ 5%.

c) Vendors – TDS is required to be deducted at higher rate where payment is made u/s. 194A to 194 Q for payment made to Vendors.