TDS u/s 192B for Inorperative PAN

Ask the Community Statutory Compliance
1

Hi Team,

We have an employee whose PAN and Aadhar is not linked. Status of PAN is active but is inoperative. TDS was deducted u/s 192B as per individual tax slab rates. Should we change the TDS calculation to flat 20%? If yes, how to do this on Greythr?

Experts, please advise.

Thanks in Advance
Jayalakshmi

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2

There are two options

  1. Deduct the tax at higher rate (IT dept circular states this) if the PAN is inoperative
  2. Educate the employee to give an appeal to link PAN and UID ASAP by paying a fine of Rs. 1000. The employee has to wait for minimum 30 days for getting the link established.
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3

Hi All,

If employee will not link Pan with Aadhar than did we have to calculate higher tax in payroll, or it will impact to employee only for personal ITR.

Thanks,
Rohit Jha

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