Dear Sir,
IT Department enhanced the threshold
limit for quoting PAN while Filing TDS/TCS Returns. The
threshold limit has been enhanced from 90% to 95% in case of
form 24Q and from 70% to
85% in case of Forms 26Q and 27EQ. The
same will be applicable for and from the quarter ending
31.3.2008. A press release to this effect is enclosed
hereunder.
No.402/92/2006-MC (10 of 2008)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New
Delhi dated the 12th February 2008
PRESS RELEASE
All tax deductors / collectors are required to file the
TDS/TCS returns in Form No.24Q (for salaries), Form No.26Q (for payments other
than salaries) or Form No.27EQ (for TCS). These forms require details of all tax
deductions with name and permanent account number (PAN) of parties from whom tax
was deducted.
It had earlier been decided that Form No.24Q with less
than 90% of PAN data and Form No.26Q & Form No.27EQ with less than 70% of
PAN data will not be accepted for the quarter ending on 30.09.2007 and
thereafter.
The said decision has since been reviewed. It has now
been decided to enhance the threshold limit for PAN quoting without which
TDS/TCS returns will not be accepted. The limit has been enhanced to 95% from
90% in case of Form 24Q and to 85% from 70% in case of Forms 26Q and 27EQ. The
enhanced limits will be applicable for and from the quarter ending 31.03.2008.
These threshold limits will also apply to all those TDS/TCS returns, which are
filed for any of the earlier quarters on or after 01/04/2008.
Tax deductors and tax collectors are, therefore, advised
to obtain correct PAN of all deductees and quote the same in their TDS / TCS
returns. Deductees are also advised to furnish their correct PAN with their
deductors, failing which they will not only have difficulty in getting credit of
TDS/TCS in their income tax assessments but will also face penal proceedings
under the Income Tax Act.