Tax deduction and collection compliance: mandatory PAN quoting and elevated withholding where PAN not furnished, plus reporting duties. Clause 397 requires persons who deduct or collect tax to obtain and quote a tax deduction and collection account number, and obliges payees to furnish a Permanent Account Number; failure to provide PAN renders certain declarations invalid and triggers withholding or collection at elevated rates subject to specified exceptions and limitations. Deductors and collectors must deposit taxes to the Central Government, file prescribed statements and may correct those statements within six years, while liability to pay tax to the Government remains despite any failure to collect.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax deduction and collection compliance: mandatory PAN quoting and elevated withholding where PAN not furnished, plus reporting duties.
Clause 397 requires persons who deduct or collect tax to obtain and quote a tax deduction and collection account number, and obliges payees to furnish a Permanent Account Number; failure to provide PAN renders certain declarations invalid and triggers withholding or collection at elevated rates subject to specified exceptions and limitations. Deductors and collectors must deposit taxes to the Central Government, file prescribed statements and may correct those statements within six years, while liability to pay tax to the Government remains despite any failure to collect.
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