Consider linking PAN to your EPF account to keep away from extra TDS. Here’s how
2 min readIn order to keep away from extra tax deducted at supply (TDS), all staff ought to instantly hyperlink their Permanent Account Number (PAN) to EPF. For not finishing the required formalities, the staff must pay double the speed of regular TDS.
In case your PAN is linked to your EPF account, then TDS shall be deducted at a fee of 10%. On the opposite hand, for not linking your PAN with the EPF account, a 20% TDS shall be deducted.
According to a round launched on 6 April, “For every day that the failure continues, you’ll be charged Rs.200. Late charges, alternatively, should not exceed the quantity of TDS.”
Every taxpayer who receives taxable revenue is required by part 206AA of the IT Act to supply their PAN to the payer (EPFO).
The round additionally famous that if the PAN will not be linked to PF Account then tax shall be deducted at following charges (whichever is greater):
(i) on the fee specified within the related provision of 206AA of the IT Act; or
(ii) on the fee or charges in power; or
(iii) on the fee of twenty per cent: (Ref. part 194 A learn with part 206 AA of Income Tax Act).
Here is tips on how to hyperlink your PAN together with your EPF account:
Step 1: Login to the EPFO portal together with your UAN credential
Step 2: Under the tab “Manage”, Click on the KYC possibility
Step 3: You will land on a brand new web page while you hyperlink PAN with EPF account
Step 4: Enter your title and the PAN. And save.
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