Do you not furnish PAN or Aadhaar? You will not get this last benefit announced by Modi govt

According to the CBDT notice, the TDS on the amount paid or credited during the period from May 14, 2020 to March 31, 2021 will be deducted at the specified reduced rates.

Aren’t you supplying PAN / Aadhaar for income tax purposes? The benefit of the last reduction in tax rates deducted at source and taxes collected at source will not apply to those who do not provide PAN or Aadhaar. In light of the COVID-19 pandemic, the central government has reduced TDS and TCS rates on various transactions by 25 percent. However, it will not apply to those who have to pay higher taxes for not providing the PAN or Aadhaar numbers.

In an official notification, the Central Board of Direct Taxes said, “There will be no reduction in TDS or TCS rates, where the tax must be deducted or collected at a higher rate due to the lack of supply of PAN / Aadhaar. By For example, if the tax is required to be deducted at 20% under section 206AA of the Income Tax Act due to lack of supply of PAN / Aadhaar, it will be deducted at a rate of 20% and not at a rate of fifteen % “.

The tax deduction at source (TDS) rates for some specific non-salaried payments made to residents have been reduced by 25% during the period from May 14, 2020 to March 31, 2021 to provide more funds available to taxpayers to deal with the economic situation that arises from the COVID-19 pandemic.

According to the CBDT notice, the TDS on the amount paid or credited during the period from May 14, 2020 to March 31, 2021 will be deducted at the specified reduced rates. In addition, tax on the amount received or debited during the period from May 14, 2020 to March 31, 2021 will be collected at the reduced rates specified in the notice.