Under Section 206AA of the IT Act, every taxpayer receiving taxable income is required to mandatorily give his PAN number to the payer. If PAN is not linked with EPFO then TDS will be deducted at double rate
New Delhi . If you want to save yourself from additional TDS (Tax Deduction at Source) then without wasting time you should link your PAN number with your EPF account. According to the circular issued by the EPFO, if your PAN number is not linked with your EPF account, then TDS will be deducted at the rate of 20 percent.
At the same time, if your EPFO account is linked with a valid PAN number, then the deduction will be done at the normal rate of 10 percent. The level of TDS will remain the same in case of death also. Section 206AA of the IT Act requires that every taxpayer receiving taxable income must provide his PAN to the Payee (EPFO).
Rules for claiming TDS
To claim TDS, you have to file TDS return. TDS can be claimed by filling Form 26q and 27q. However, for the delay in claiming TDS, you will be charged Rs 200 as late fee every day. However, the amount of late fee will not exceed TDS. TDS returns can be filed by July 31 for the first quarter, by October 31 for the second quarter, January 31 for the third quarter and May 31 for the fourth quarter.
How to link PAN number and EPFO account
- Login to your EPFO portal using your UAN credentials
- After this click on KYC coming under ‘Manage’
- Now browser will take you to a new page where you can link your EPF account with “PAN”
- Click on ‘PAN’, now enter your name as written on the PAN and PAN card number
Finally click on ‘Save’
At what rates TDS can be deducted
As per the new circular, TDS will be deducted at the highest of the following rates if the PF account is not linked with a valid PAN. First, under reasonable rate under 206AA of the IT Act. We have already talked about this act. After this, the second rate that is applicable at present, it can be one or more than one. TDS can be deducted at the rate of 20 percent i.e. double of the third rate normally applicable rate of 10 percent.
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