Saturday, October 27, 2007

No TDS returns without PAN details

No TDS returns without PAN details

Source: Economic Times


The government on Tuesday said it will not accept tax returns for the quarter ending September 30 and thereafter if companies fail to provide PAN details of a majority of their employees.

The Income Tax Department will not accept the quarterly TDS returns in respect of salaries if companies did not give PAN details of at least 90 per cent of their employees, an official statement said.

In case of TDS returns for payments other than salaries and TCS (tax collected at source) returns, all companies must submit PAN details of at least 70 per cent their staff.

If the companies fail to provide PAN details they will face penal proceedings under the Income Tax Act. The government also asked taxpayers liable to TDS/TCS to furnish their correct PAN with their employers, failing which they will also face penal proceedings.

The statement said it has been observed that in most of the TDS or TCS returns, the Permanent Account Number (PAN) of the taxpayer is either missing or incorrect.

As the requirement of filing TDS/TCS certificates has been done away with, the lack of PAN of deductees is creating difficulties in giving credit for the tax deducted and collected, the statement said.

The government also made filing of TDS or TCS returns in electronic form mandatory for additional categories of taxpayers from the July-September quarter

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