The Hindu : Business : Threshold limit for PAN enhanced

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Thursday, Feb 14, 2008
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Threshold limit for PAN enhanced

Special Correspondent

NEW DELHI: The Income-tax Department has made it mandatory for employers to quote the permanent account number (PAN) of all of employees and ‘parties’ from whom tax has been deducted while filing quarterly returns with regard to TDS and TCS.

“It has now been decided to enhance the threshold limit for PAN quoting without which TDS/TCS (tax deducted at source/tax collected at source) returns will not be accepted,” a Finance Ministry release said here on Tuesday.

The Ministry said that the limit has been enhanced to 95 per cent from 90 per cent in the case of Form 24Q (for salaries) and to 85 per cent from 70 per cent in case of Form 26Q (for payments other than salaries) and Form 27EQ (for TCS). All tax deductors and collectors of tax are required to file TDS/TCS returns in these forms which require details of all tax deductions with name and PAN of parties from whom tax has been deducted.

Date of effect

The enhanced limits, the release said, would be applicable for and from the quarter ending March 31, 2008. The new threshold limits would also apply to all TDS/TCS returns to be filed for any earlier quarter on or after April 1 this year.

Earlier, the Finance Ministry had decided that TDS/TCS returns with less than 90 per cent and 70 per cent of PAN data for the respective categories would not be accepted for the quarter ended September 30, 2007, and thereafter.

The Ministry also directed the employees and other parties to furnish the correct PAN to their employers and tax deductors, failing which they would not only have difficulties in getting credit of TDS/TCS in their tax assessments but also face penal proceedings under the IT Act.

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