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    Question

    If PAN of the deductee is not available, TDS should be

    deducted at:
    A 5% Correct Answer Incorrect Answer
    B 10% Correct Answer Incorrect Answer
    C 20% Correct Answer Incorrect Answer
    D 30% Correct Answer Incorrect Answer

    Solution

    Section 206AA imposes a penalty-like higher TDS rate to force PAN disclosure. If PAN not furnished → TDS @ 20% or higher rate if applicable. (Section 206AA requires deduction @ 20% in absence of PAN.)

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