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Created by : Dayanand Deshpande, Senior Consultant, Ernst & Young  | 04 01 2010 07:09:30 +0000
Industry : Equity Research/AnalyticsFunctional Area : Equities(Markets)
Activity:  2791 views;  last activity : 07 06 2010 20:18:09 +0000

Few days back Government passed a law that anybody who has no PAN number will have to shed out more tax up front on any income received from April 1. The tax deducted at source, or TDS, on payments could be as high as 20% for those not quoting PAN against the regular rate of 2%-10%. The idea behind the rule is to encourage more people to obtain PAN, a 10-digit alphanumeric tax payer identification number, and thereby become visible to tax authorities. The tax base of the country is a mere 3.3 crore because of massive under-reporting of incomes and large-scale exemptions.

In this regard, I would like to ask you all, should PAN number be mandatory for people who do not have tax liability?

 
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PAN No. should be made mandatory because it can keep a track of every individual's financial activity. Having a PAN No. does not mean that you have to necessarily pay tax, even if your income in not taxable. There are still  huge numbers of people who evade tax.


By Satish Salpekar, Vice President (West), Association of Consulting Civil Engineers (India)  04 02 2010 09:58:26 +0000
 
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This would put unnecessary burden on senior citizens who do not have a tax liability. With this provision coming into effect even non-residents, having just one-off transaction with Indian parties will have to obtain PAN, failing which they will suffer a much higher withholding tax on their income. Even though, 15G/H firm produced. Government is imposing these types of rule in regulated networks only. This will bring lot of hurdles only to middle/lower class people (already tax paying group). They have to concentrate on bringing all other unregulated things under IT fold.


By Dayanand Deshpande, Senior Consultant, Ernst & Young  04 01 2010 07:09:30 +0000
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PAN is must as it ia very important doc and has validity as identity proof 


By Nikhil , Senior Manager, Insurance  | 04 03 2010 06:08:32 +0000
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With effect from April 1, 2010 PAN number is mandatory for all persons who are lible to tds from any source of income specified under the Act, if that is not available then a higher rate of 20% will be applicable. This provision of law has been introduced only to have an identity of the person who have the obligation to effect tds from his income from any source stated above. With the introduction of this law the income tax department will get the identity of the all persons who has the obligation for tds. You may be knowing that the deductor of tax has obligation to file tds returns quoting PAN numbers of all the persons mentioned therein. So, from the department point of view it will be easy for them to manage their affairs most effectively.


By RAMANATHA PRABHU N, Chartered Accountant  | 04 03 2010 05:57:09 +0000
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PAN No. should be made mandatory because it can keep every individual's aware about its financial activity. Having a PAN No. does not mean that you have to necessarily pay tax, even if your income in not taxable. Its our responsiblity to pay tax if we come in tax limit otherwise it is not necessary. The tax which the peoples pay's, it comes in making our country developed country & provide all necessary facilties to their country peoples. the 3% EDUCATON CESS which every one pay with tax, the 3% Edu. cess comes in the childrens education & providing them food.

 

 


By Rakesh Singh Rawat, B.Com student, M.B.P.G. College, Haldwani Kamoun University, Nainital & Doing Job in Income Tax Office, Haldwani from last 2 years.  | 04 02 2010 20:04:49 +0000
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Yes,I do agree with the statement because it will help in tracking transactions. In turn tax collection will increase.


By JAI PRAKASH TIWARI, Execution of Mech.Maint.work in thermal power plant, NTPC LTD  | 04 02 2010 16:04:30 +0000
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and I DO support govenrment in saying that this is important move as its important to keep a track of each individual living in the contry. it simplifies the work of government in the times of crisis or calamity or even crimes and other judgements. the knowledge of nation always helps IF USED IN THE RIGHT MANNER AND IF THE IMPORTANCE OF KNOWLEDGE IS UNDERSTOOD BY THE GOVERNMENT. WE HAVE CRIMINAL POLITICIANS AND ILLITERATE POLITICIANS AND THEY DONT UNDERSTAND THE IMPORTANCE OF ORGANIZATION & KNOWLEDGE GATHERING. and thats where everything falls apart.

and I SAY NO its not needed, because of the problems of Infrastructure issues and timing. i means its more like government is being brutal and they wanna be safe in the times of downfall of the economy by extracting a bit more juice out of people's money (they dont earn anything for the country and they dont help country earn anything and whatever is earned by the country goes in their pockets). SO WHATS THE POINT OF ALL THIS RUBBISH?


By Ashish Gandhi, CEO/MD/Director, Creative Director, PostBox Communications  | 04 01 2010 10:33:20 +0000
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I have a whole Plan almost ready, creating a "National Card" for Indian Citizens and those who carry dual citizenship and even NRIs.

create a system by which the whole nation can be united, organized and much better to gather knowledge. this card will be an all in one card which carries all of your information like your both details & personal information, your TAX information, other status information, your relatives, your past & current activities, driving licenses, penalties, dues, credit history, educational info, spouse, children, policies, investments, bank detals, & lots more ... and all this information has a back up which basically takes care of Crisis Control or a breakdown int he system. of course the back up is not hourly or daily but its seconds only ... and there are replicas of the same to basically overcome disasters (Disaster Control Administration & Data Bank).

all the information is available on request to only the person holding the information card with his fingerprints & even Retina Scan if needed (biometric Solutions). and of course to a few individuals at the highest level (private info check) and police will have info to the criminal records & health records & cars and others.

so basically what i am saying is create an all in one card which gives you control over your life in a much simpler way. in 21st century we are talking about revolution, India becoming the Super Power, India becoming the Super Economy and this and that, but Friends, where is India today? and where is the Infrastructure? where is the organisation? where is the zeal to do something for the enhancement of life and bettermeant of Nation?

Government says that we will first upbring the people who are not well to do or established or something like that, i say whats happening on those front? what do you mean by unlift them? what are you planning to do? you say this is the budget to do it, but i say give us the break up? just by helping a farmer with some water in a year you are not upbringing anything in them, you are just helping them work and live the same life they were living before you came. may be he will earn 200-300 more every month by helping reduce the taxes or helping reduce other stuff. but what happens in those 200-300 ? even if yuou pick a 2000, is that a good enough amount to get your child a computer at home? or help him learn English better? is the farmer actually going to spend that money to teach his child all these "Luxury" or teach him how to dig and ripe and stuff so he can help him in the future? i say the latter.

because he doesnt know the importance of other stuff in life, because he doesnt have time to look at other aspects of life. and these politician AND the government shows off that they have done great for them and they buy that because they dont know much outside their homes. the movies are just fantasy for them so they dont even inspire them to get out of their house and look at a different life.

anyways back to saying why we should not allow governemtn to impose these things on us is because it has to be a fair practive by them. before imposing there needs an infrastructure which can handle the job EFFICIENTLY.


By Ashish Gandhi, CEO/MD/Director, Creative Director, PostBox Communications  | 04 01 2010 10:32:58 +0000
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Well i would say YES and i would also say NO.

WHY NO?
The government has gone absolutely mad. April 1st? is it a Joke? Mass AprilFool? come on man ... you need to give some time for people to get in there and get things sorted about these stuff.

1. these are way too many people, EVEN TODAY, who do not have 1000 documents regarding their existence in India or on this planet. FIRST GET THOSE SORTED. PAN Card is not given to everyone who shows up on their door steps, so give proper facilities to people which can help them get a PAN Card. i remember when one of my relatives needed a PAN Card, Passport, Marriage Registration Certificate, etc .... the couple is 55 years old, and their birth certificate said a little different name than their other school certificates and ration card and medical certificates and stuff like those ... SO? they are not eligible till the time they prove they ARE THAT PERSON. how do you prove? get a certificate from court. the court procedure? no one knows, at 55 they had to go through a 5 day of police station, court, registrar, municipality and what not ... just to get a couple of certificates to prove that they are them.


well i am not saying that its not necessary, we need to make sure that they are them who we approve of Indian Citizenship but than the laws and corruption makes it a real headache for elderly people. before 50 years, english wasnt that precise for everyone, vernaculars didnt be very precise in their job, our grand parents werent that educated (well not all of them) to know the importance of the documents at that time. there were no (strict)rules, regulations, procedures to get these things registered and stuff like those, how do you expect all the documentation in place and intact? well i say its not that simple as it sounds to get a PAN Card, Passport, Voting Card (its really a joke about voting card as the officers make mistakes in writing my name and i am not allowed to vote because my id and voting card dont match. application to change name is as good as getting a new voting card, getting a new voting card, 1000 years procedure. its funny and sad.)

for me, it feels like a burden to carry 5 different IDs or Cards as i dont know when what will be required. its stupid and its sad and its messy and its just impractical. AND its frustrating Government Management.


By Ashish Gandhi, CEO/MD/Director, Creative Director, PostBox Communications  | 04 01 2010 10:32:12 +0000
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Percentage of TDS is less then tax payable at maximum marginal rate abd it has been found in certain cases that such persons have not filed return To ascertain tax avoidance by few persons one requires a data base and that can be on the baseis of PAN NO.Law required the tax deducter to give PAN of receipent and failure resulted in penality.PAN is necesaty and there is no device to ascertain that tho person receiving the payment is having no liabilty.Alternative is that the treshold of limit above which tax is required to deduct tax should be more and the haressment is to be reduced 


By NL Kalra, Law Officer, Govt. of India Ministy of Law  | 04 01 2010 10:26:24 +0000
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It will lead to unnecessary hassels for ordinary citizens and especially senior citizens in semi urban and rural ares.


By AJAY SAXENA, Branch Manager/Regional Manager, State Bank of India Group  | 04 02 2010 12:52:02 +0000
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I agree that creativity & brainstorming cannot go together because creativity is an individual's think process that is put into existence. A group of people will not think in similar direction, as that of others. The only connection between the two could be that any creativity can be put to brain storming to understand the thoughts of the creator behind that creativity.


By Satish Salpekar, Vice President (West), Association of Consulting Civil Engineers (India)  | 04 02 2010 09:47:03 +0000
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Just few minutes .. I was visiting TooStep to a question : How India may curb black money. Some posted  views that Govt. in doing nothing. Now I come accross this question : should PAN be made a condition for deducting TDS at lower rate ?

Who is eligible for TDS : who earns Rs.10,000=00 or more as Interest p.a. from his /her investments. May this section be a slam dweller or a BPL member or a daily wage earner ?

Is not this step by Govt. was long awited ? Are they not trying to identify the tax evaders ? Are they not encouraging people to have a PAN card ? May ( then ) not we may go forward for the "Unique Identification Number" ( we often speak for advanced countries ) ?

Better late than never. Govt is late to introduce such law. The investors' section is not just poor. To save from higher TDS, they should hurry to the nearest centre ( generally a Xerox house, a PCO booth owner or a small time MF seller or some agents of Bank/MF/LIC etc. ) to have a PAN card.

 

 


By ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India  | 04 01 2010 17:22:47 +0000
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No. The large majority of people without tax liability are farmers and daily wage earners, and its not proven that the issuance of PAN Cards would be useful for this group (also this would have its own costs). Why would they want to line up outside government offices in the cities for a PAN Card? Or why would any of us want hundreds of millions of non-tax payers queuing for PAN Cards in the cities?

 


By Shahnawaz Islam, PR & Media Relations Manager, National Institute of Smart Governance  | 04 01 2010 09:14:03 +0000
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NO... ITS JUST THE FM's WAY, TO GET MAX PEOPLE IN HIS TAX DRAGNET !

As a responsible Citizen of India, one should lay more emphasis on an Personal Identity Card ( which is being developed ), as a  Tax Paying Citizen a PANCARD is Fine, but there are Lacs of Senior Citizens, Retired persons etc., who do not come under the Tax Liability Scheme... WHY BOTHER THEM uselessly ?

YES... Our country does need more n more TAX PAYERS... But no point in pulling in people who dont have Taxable Income.

Happy Debating Friends !

 

 


By Naushad H.L., Creative Director, MAD COMMUNICATION  | 04 01 2010 08:28:27 +0000
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