MANDATORY PAN % INCREASED IN ETDS ETCS RETURN.

3:55 PM
The CBDT through a press notification Issued on 12.02.2008 has increased the mandatory Pan % (Earlier issued on 25/09/2007)in e-tds and e-tcs return o and from quarter ending 31.03.08 and no return will be accepted if mandatory pan has not been filled on or after 01.04.2008.

New % will as under.

For form 24q (etds return for salary mandatory pan limit will be 95% increased from 90%
For Form 26q and form 27eq(e-TCS) mandatory pan limit will be 85% increased from 70% earlier.

This new % will be applicable from 01.04.2008 on each & every return filed on or after 01.04.2008 though related to a period earlier than quarter ending 31.03.2008

This is surprise to me and you because on 04/02/2008 in a earlier press release CBDT has increased the due date of filing etds/etcs return to 29.02.2008 for quarter ending 30.09.2007 and has mentioned the reason as hereunder

"This is in view of the difficulties being faced by the tax deductors /collectors in filing statements with the correct PAN data mandatorily required to be furnished to the extent of at least 90% in the cases of salaried deductees and 70% in the cases of other deductees."

so my point is that a week ago CBDT is of a view of that it is difficult for a deductor to collect mandatory pan % of 70/90% so date of etds/etcs return has been increased but now after a week,

Is circumstances are improved so much that lead them(CBDT) to increase the mandatory percentage from 90 to 95 percent in case of salary and 70 to 85 % in any other case?
Do They (CBDT) think that it is easy to collect 95/85 % pan easier than 90/70% ?
If they relaxing the time period a week ago due to non collection of mandatory pan % by deductor than why they are increasing the mandatory pan %?
The last date to file etds /etcs return for quarter ending 30.09.2007 has been increased to 29.02.2008 but due date for quarter ending 31.12.2007 remains 15.01.2008 .why?.

all the answer they know better.

Though I am firm believer in etax management should be applied as early as possible and its more beneficial to tax payers than deptt yet policy should not be changed frequently.

one thing good they done in all this episode is that they have declared the policy at reasonable time before the applicable date.so we should make ourselves ready for the event and should take following steps so that no problem arises at the time of filing of etds/etcs return.

For salary return.

To all your present employees (who has been deducted or to be deducted has not submitted their pan ) issue instruction to submit their pan /Photocopy of pan card in 10-15 days.
Check present employees Pan Structure as FUV will check only structure of pan .
Help employees to get Pan card issued if they don't have earlier
For new employees release first month salary only if the they give pan card photocopy
verify/find pan online from deptt site with input data name,fathers name and date of birth which generally with the employer.
print occasionally a note on payslip that submission and correctness of pan is mandatory and obligation of the employee and by not doing so they will not only have difficulties in getting tax credit of tax but will face penal proceedings under the income tax act.
For other than salary return
Insert a clause in NIT (notice inviting tender) that contractor who has a valid pan on their name can only apply and they will give proof of pan as and when required.
Issue letters to earlier /present contractor to submit their pan.
Try to find the pan of contractor on internet as some time date of incorporation is given on bill of the company of firm.
Encourage/help the Small Contractors to get pan issued from income tax deptt.

all the above are indicative list and I write as it come to my mind .

For Deductees

one more thing I would like to share with you ,if you are a deductee than please provide your pan to deductor as this will not only help your deductor to file their etds return but also in the era of annexure less income tax return due credit of your tds will be available to you through your online pan ledger (form 26as).

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