Please Help: Income Tax

Dear Atul Ji, in case of TCS, for such PAN absence, the rate would be 20% as the rate of TDS......

Dear Atul Ji, As far as I concern, sec 206aa of IT Act which was inserted from 01.04.2010 is only talks about TDS @ 20% in case of no pan, regarding TCS it is totally silent and also there is no other specific section (as far as my knowledge is concern) which says that we should collect tcs @ 20% in case of absence of PAN.

So, according to me even in case of absence of PAN No. is TCS should be collected at the normal rates and not @ 20%.

Hope you got the answer you were looking for, have a nice day Atul Ji.........

I am providing the answer as per my knowledge and experience, i.e. 20%, but majority is answering else, therefore if my answer is wrong please forgive me.......

Dear Atul,

In the instant case, it may be noted that TCS will be collected at the rate provided in section 206C of Income Tac Act, 1961 as Section 206AA is applicable to Section 206C i.e. TCS.
Further, it may also be noted that Section 206AA(1) (i.e. deduction at 20% if PAN not available)is applicable ONLY for any deduction under Chepter XVIIB and as far as TCS is considered, the same is covered under chapter XVIIBB.

Thus, the provision of deduction at higher rate is not applicable to TCS.

Hope the above suffice.