FAQ PAN TDS

TDS means Income Tax Deducted at Source. It is the amount withheld from payments of various kinds such as commission, Fees for professional or Technical services, Salary, Contracts, Rent etc. This withheld amount can be adjusted against your tax due. If there is no tax due by a person, he can also claim and get refund from Income Tax department.

Alternatively, he can apply for nil/ lower deduction certificate at any time during the year.

TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the account of the Government. It is similar to "pay as you earn" scheme also known as Withholding Tax in many other countries. It facilitates sharing of responsibility of tax collection between the deductor and the tax administration. It ensures regular inflow of cash resources to the Government. It acts as a powerful instrument to prevent tax evasion as well as expands the net.

Refer FAQ no. 2 and 3 above. As Sahaj is paying Professional fees/ Technical fees and / or Commission, hence, accoridng to the applicable Income Tax law, as stated above, Sahaj is liable to deduct tax at source from your income, at the time of credit or payment in our account, which ever is earlier. All the tax at source collected by Sahaj is deposited with the Government as per applicable laws.

No Tax has to be deducted for the payment made to party where the party produces a Non-deduction certificate or Lower-deduction certificate under section 197 of the Income Tax Act 1961.

Click here to know the detailed process of obtaining Non deduction or Lower-deduction certificate.

Form 13

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any person who applied for it. Income tax department recognised every assessee by its PAN. Every person who wants to pay tax, receive refund or communicate with Income Tax Department in the capacity of a assessee should have a valid PAN.

PAN application should be made only on Form 49A. A PAN application (Form 49A) can be downloaded from the website of Income Tax department or UTIISL or NSDL (www.incometaxindia.gov.in, www.utiisl.co.in or tin-nsdl.com) or printed by local printers or photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also available at IT PAN Service centers and TIN Facilitation centers.

1. Individual applicants will have to affix one recent, coloured photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;
2. Any one document out of the following as proof of Identity :

   Copy of school leaving certificate or matriculation certificate or degree of a recognized educational institution or depository account or credit card or bank account or water bill or ration card or property tax assessment order or passport or voter identity card or driving license or certificate of identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted Officer;

3. Any one document out of the following as proof of address :

   Copy of electricity bill or telephone bill or depository account or credit card or bank account or ration card or employer certificate or passport or voter identity card or property tax assessment order or driving license or rent receipt or certificate of address signed by a MP/ MLA/Municipal Councilor / a Gazetted Officer;

4. Designation and code of the concerned Assessing Officer of Income Tax department will have to be mentioned in Form 49A.

   Assessing Officer code may be obtained from Income Tax Office where you submit your return of income. Applicants who have never filed return of income may find out Assessing Officer code with the help of IT PAN Service Center or TIN Facilitation Center or jurisdictional Income Tax Office.

1. It is mandatory to quote PAN on return of income, all correspondence with any income tax authority as explained above.
2. . As per the applicable laws, TDS rate will be 20% for not having the PAN under commission and professional / technical fees instead of 10%
3. No TDS certificate can be issued anu deductor to the person who does not have a PAN inspite of deduction of TDS.
4. No claim of refund is entertained by the Income Tax Dedpartment for non having the PAN.

Tax will be deducted at 10% of VLE income in case VLE has submitted the copy of PAN to and 20% in case VLE has not submitted copy of PAN.TDS will be deducted on next day where it is be deducted on upfront VLE income and at the time of raising invoice on service provider (like DPLI,WBSEDCL etc) when Sahaj raises the invoices thereon.

Currently the VLE can get the details from respective state accounts. In the near future, VLE computation will be hosted on the Portal where in the VLE can log in and see his computation.

In case you have not shared you PAN with the Company, there is nothing that can be done. In case you have shared the PAN with the Company, you have to compute your tax liability considering total income from all sources, i.e. Income from Sahaj, Income from other sources etc. If tax liability is lower than the amount of tax deducted then you adjust the amount so deducted from Sahaj. If Tax has deducted more than your tax liability then you may claim the refund from Income Tax department.

There are two options to claim the refund of excess amount deducted: 1. Online 2. Offline (Paper format)

Procedure to file the offline income tax return:

1. Collect the income tax return form from Income Tax department/ Tax practitioners/ Income tax website
2. Fill up the form and sign it.
3. Submit the return with the income Tax department as per your jurisdiction attaching the computation and hard copies of TDS certificates received from Sahaj & other parties from whom you have received the income.

Procedure to file the online income tax return:

1. Register your name for one-time on the website www.incometaxindiaefiling.gov.in
2. Download the return form
3. Fill up the form
4. Login and upload the same

Click here to know the detailed procedure of online income tax return

TDS certificate for the financial year 2011-12 to be collected from the respective states accounts manager. And FY 2012-13 onwards to be available on portal. Vle can directly download from Sahaj portal.

Income tax department has initiated a process of viewing Form 26AS online. This form will give full details of what amount has been deducted under which section.

For viewing the Form 26AS, a person needs to have a valid PAN. Person who does not have a PAN, would not be able to view Form 26AS, as the tax deducted at source would not have got credited in his PAN.

Click here to know the detailed process of viewing Form 26AS.