The tax rate for employees without PAN is 20% which is calculated as a penalty.
The Income Tax calculation for the employees without PAN is similar to the previous budget. This calculation is also the same for old and new regimes. If the income of employees falls under the tax rate of 20%, then the employees will be charged 20% tax irrespective of the tax rates. The tax is deducted according to the actual tax calculation for the employees falling under the tax rate higher than 20%.
| Old Regime (with deductions and exemptions) | Total Income | New tax regime (without exemptions and deductions) |
|---|---|---|
| Nil | Upto 2.5 lakh | NIL |
| 5% | From 2,50,001 to 5,00,000 | 5% |
| 20% |
From 5,00,001 to 7,50,000 From 7,50,001 to 10,00,000 |
10% 15% |
| 30% |
From 10,00,001 to 12,50,000 From 12,50,001 to 15,00,000 From 15,00,001 and above |
20% 25% 30% |
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