FURNISH PAN WHEN TDS DEDUCTED
The importance of PAN card has been increasing with time. Importance of PAN card is never understood by a common person. This article shall provide a depth into the importance of PAN card and its advantage in TDS.
WHAT IS PAN CARD?
PERMANENT ACCOUNT NUMBER:” It is a unique 10 digit alphanumeric identity allotted to each tax payer by the income tax department under the guidelines of the Central Board of Direct Taxes”
Unlike the Aadhaar card and driving license it is also issued to foreign nationals subject to a valid visa that’s why it is not accepted as a proof of an Indian citizenship.
PAN card is mandatory for majority of financial transactions such as opening a bank account, receiving taxable salary, sale or purchase of assets especially high value transactions.
PAN card number is unique and is valid for the lifetime of a holder.
OBTAINING PAN CARD:
It is optional just like driving license, passport, adhaar etc. Although use of a pan card is mandatory at required places or situations only.
• One can apply for pan card by submitting the application at the authorized PAN agency of the state.
• 2 passport size photograph, ID proof, address and date of birth and fee.
• It takes 10-15 days to receive the card via courier.
WHAT IS TDS?
It is a means of indirect collection of tax by the government, according to the income tax act 1961. TDS is managed by the Central Board of Direct Taxes, which comes under The Indian Revenue Services (IRS).
A deductor is required to issue a TDS certificate known as form 16 for salaried employees and 16A for non-salaried employees within a specified time. One needs to issue the TDS certificate within one month of the next financial year.
Related Post: Advance Tax – Guide
PAN CARD FURNISHING FOR TDS:
It is now very useful to have a PAN before TDS deduction. Any income payable to the assesses is liable for TDS by the person making the payment. TDS ranges from 1% to 30% depending upon the nature of the income. Individuals or companies who do not disclose about their PAN card will be liable to pay the TDS at the maximum range of 30%.
This step is taken by the government to speed up the revenue collection.
For any help on TDS RETURN feel free to consult the tax experts at Taxraahi. You can file TDS Return yourself via our TDS software or get CA’s help on filing income tax return. You can also use the option of Business Return, Bulk Return or Revised Return Filing.