What are the consequences if the admin does not capture employees' PAN details?

A PAN (Permanent Account Number) is a unique ten-character alphanumeric code issued by the Indian Income Tax Department. It serves as a national identification number for financial transactions, and tax purposes and acts as proof of identity.

If the admin does not add an employee's PAN details then: 

1. Tax shall be deducted at the highest of the following rates:

   1. At the rate specified in the relevant provision of the Income-tax Act; or

   2. At the rate or rates in force; or

   3. At the rate of 20%

2. Employees will face difficulties while filing income tax returns and claiming tax refunds. They will also not receive Form 16.

3. Employees risk missing out on tax rebates under Section 87A of the Income Tax Act and end up paying more taxes. As per Section 206AA, taxes will be computed as mentioned in (1) and will not be eligible for rebate under 87A.

To know more about Section 206AA, visit https://incometaxindia.gov.in/Pages/faqs.aspx?c=13

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Documentation - To learn more about the PAN page, click here.

Product Update - To read about the product update, click here.