Answer-If a deductee fails to furnish their Permanent Account Number (PAN) to the person responsible for de...

Section 206AA mandates that if the recipient of taxable income does not furnish their PAN to the deductor, TDS must be deducted at the higher of the following rates the rate specified in the Act, the rate in force, or a punishing floor rate of 20.

Question

If a deductee fails to furnish their Permanent Account Number (PA

N to the person responsible for deducting tax at source, tax will be deducted at which of the following rates?

A At the rate specified in the relevant provision of the Act or at 10%, whichever is higher

B At the rate specified in the relevant provision of the Act or at 20%, whichever is higher

C At a flat rate of 30% invariably

D No TDS will be deducted until the PAN is provided

E At a flat rate of 5% across all categories

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If a deductee fails to furnish their Permanent Account Number (PA

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