New Delhi: Tax at source will be deducted at the highest level on income accruing to people without permanent account numbers, following a new notification on Wednesday that takes effect on April 1.
The tax will be deducted at 20 per cent or the highest prescribed rate for the category of income, whichever is higher, said a circular issued by the Central Board of Direct Tax.
"The law will also apply to all non-residents in respect of payments and remittances liable to tax deduction at source," a Finance Ministry statement said.
According to the new guidelines, assessing officer will not issue certificate for deduction at lower rate or zero-deduction unless an application bears the permanent account number, the government said.
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