Provide PAN or AADHAR to avoid TDS @ 20% by employer!

Know the real position of law ….

What’s current law before 16 Jan 2020 circular?

Ans: Already law is there that employer need to do tds @20%+, if employee doesn’t provide PAN details.

What change has been brought by 16 Jan 2020 amendment?

Ans: Now employee has option. If employee doesn’t have PAN, employee can share Aadhar.

What will happen if employee doesn’t provide PAN or AADHAAR?

Ans: In such scenarios, employer would do TDS @ 20% or average tax rate on estimated annual salary whichever is higher.

What should I do to avoid excess TDS by employer?

Ans: You provide your PAN details to your employer. Provide tax saving investment details to employer so that excess TDS can be avoided.