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Taxman Sounds Warning

The Income Tax authorities have announced a crackdown on erring tax payers

The government intends to get stricter on implementing tax rules and especially under the scanner are those people whose tax is being deducted at source, but who have been evading quoting their Permanent Account Number (PAN).

The taxman has sent a dire warning that not doing so from now on will cost them dear. The authorities have said that these people will have to cough up tax at higher rates.

A look at the current finance bill (2009-10) reveals that even non-resident assessees would henceforth come under the scanner and would need to quote their PAN or else they too would be taxed at higher rates.

If that was not enough, there are also proposals of bringing about a change in the Income Tax Act to tax those who do not quote their PAN number at higher rates.

This entire exercise might see the light of the day from April 1 next year.

The amount to be charged as punishment can for a TDS assessee can be as high as 20 per cent of the amount payable.

There would be no respite even for those who have inflows through other income that has not been taxed and even senior citizens and pensioners will be covered under this. If the latter do not want to be taxed, it would be mandatory for them to fill the 15 G form and furnish their PAN number.

Non-residents who have transactions within the country would have their tax deducted at source too.