I-T dept: Deduct 20% TDS from salary for those who fail to furnish PAN, Aadhaar details
NEW DELHI: The Income Tax Department has asked employers to deduct 20% TDS from salary, for those employees who fail to furnish details of PAN or Aadhar cards.
The Central Board of Direct Taxes (CBDT) framed this new rule. It came into effect on January 16.
Employers have been asked to quote correct PAN or Aadhar number of employees.
According to the Income Tax Act, employees earning an income have to provide I-T dept. with their Permanent Account Number along with Aadhar Number, failing which an applicable rate specified in the Act at 20% or higher will be deducted.
"Section 206AA in the Act makes furnishing of PAN or Aadhaar number, as the case may be, by the employee compulsory in case of receipt of any sum or income of amount, on which tax is deductible," the circular reads.
The I-T department has extended the deadline for linking PAN with Aadhaar by three months to March 31, 2020. As per an earlier notification, the cut-off date was December 31, 2019, after it was extended for three months in September.
Also Read: Law to link Aadhaar to Voter ID soon