Starting this new financial year (from 1-Apr-2010) ,please quote your Permanent Account Number (PAN) in all financial transactions, where tax need to be deducted at source (for example, Interest, rent, contract work, consultancy etc.,).
What if I do not mention my PAN? - The payer will deduct tax at a higher rate at 20% !
This will be a pain for the Senior Citizens, who do not pay tax (Meaning, they are well within the taxable limit). For most of them, bank interest is the source of income. They have to provide Form 15H to the bankers / companies. If they do not provide the PAN detail, they will receive the amount after deduction of tax @20%. Of course, they can claim refund, but cash flow is affected.
For those, who earn interest apart from other sources like Business Income or Salary income, they will not be much affected, as their advance tax payment will be reduced to that extent. But now that Form 26AS is the source for the IT dept, it is necessary that we get the credit to our PAN for the deductions made.
So, please do not be casual about this!
Cheers,
Gopal
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