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Give correct PAN or pay more tax

Source: PTI
Last updated on: July 13, 2009 17:28 IST
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All tax assessees, including non-residents, whose tax is deducted at source must quote the correct permanent account number or else they would end up paying more tax.

"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," says the Finance Bill for 2009-10.

The government also proposes to make amendments in the Income tax Act to charge those not quoting PAN at a higher tax rate from April 1 next year.

The Bill says the deductor will deduct tax at higher rates than that is in force or 20 per cent in case the TDS assessee does not furnish his PAN.

In fact, people who have interest income or other income which is not taxable should also fill a form (15 G) and senior citizens (above 65 years of age) or pensioners (form 15H) and quote their PAN in the form, if they do not want to be taxed.

Besides, a similar rule is applicable to non-residents who are liable to get tax deducted at source following any transaction in the country, according to the Finance Bill.

"These provisions will also apply to non-residents where TDS is deductible on payments or credits made to them," the document said. 

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