My maid has some deposits in the bank, Her annual income including interest on deposits and salary is less than Rs 50000 per annum. Bank is asking for PAN Numner. However I understand that I T department has issued a notificaiton that those having annjualm income of Rs 50000 or less do not need a PAN number.
Please inform what is the correct situation.
PAN Requirement for Low Income: Individuals with Rs 10,000+ Interest Must Provide PAN to Avoid 20% TDS (Sec 206AA) A query was raised regarding the necessity of a PAN number for individuals earning less than Rs 50,000 per annum. The concern involved a bank requesting a PAN number from a maid whose total annual income, including interest and salary, is below Rs 50,000. A response clarified that if the interest income is Rs 10,000 or more, a PAN must be provided to avoid a 20% TDS deduction on interest, as per section 206AA of the Income Tax Act. (AI Summary)
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