Section 206AA – Higher TDS Rate for Non-Furnishing of PAN

According to this provision, if a taxpayer (deductee) does not provide their Permanent Account Number (PAN) to the deductor, the tax must be deducted at a higher rate as a compliance measure. This rule helps ensure traceability of transactions and proper reporting of taxable income.

If you are unsure about PAN compliance or facing higher TDS deductions under Section 206AA, consulting the best tax consultants in India can help you resolve notices, optimize tax planning, and ensure accurate filing without unnecessary penalties.

Example: For instance, if PAN details are not shared, the applicable TDS rate increases to 20% instead of the usual 10%

Taxpayers struggling with incorrect TDS deductions or PAN-related issues can easily consult an income tax consultant online to review Form 26AS, correct mismatches, and guide them through proper compliance procedures.

Since higher TDS under Section 206AA may impact your final tax liability, choosing the best ITR filing services ensures proper credit claim, refund processing, and accurate reporting of deductions in your income tax return.