**Company ask for PAN Card before an interview probably** because after becoming part of the company your tax is deducted by the company and it is obligatory on their part to ensure that it goes into your PAN account, correctly. The companies have to deduct TDS on the salary paid to the employees if the salary is exceeding the minimum tax slab and if the employee does not have PAN No., TDS shall be deducted 20% without including Education Cess & SHEC, if the normal tax rate in this case is less than 20%. (Please refer section 206AA and Circular No.8 dated 13.12.2010. **So don't worry if companies ask for a PAN card before an interview because it just to ensure that you are an Income Tax Assessee and work as one of the identification proofs**
Companies deduct TDS on your salary and for deduction of TDS at slab rate your PAN card will be required. If you won.'t give your PAN No. Then TDS will be deducted at higher rate as specified in the Income Tax Act,1961. Companies also ask for PAN card as ur id proof. PAN Card is mandatory for futher details you may refer Income Tax Act,1961 to update yourself as to why PAN NO. is mandatory.
Dear Rakesh, As per the provision of tds of income tax act 1961, the company is liable to deduct tds on payment of salary to the employee on monthly basis. if company are not comply with such provision than company is liable to make payment of penalty and interest to govt. as per the provision of income tax act if deductee does not hold valid pan than tds shall be deducted with higher rate. So due to comply with regulatory requirement companies ask in interview for holding Valid PAN. Any other query feel free to contact us Writer CA Chitranjan Agarwal