In order to support the PAN appliance, section 206AA has been placed w.e.f. April, 1, 2010. The main highlights of section 206AA are as below :
Every person whose receipts are subject of deduction of tax at source (i.e. the deductee) shall furnish his PAN to the deductor. It will be compulsory from April 1, 2010.
If such person does not furnish PAN to the deductor, the deductor will deduct tax at source at higher of the following TDS rates –
- The rate prescribed in the act;
- At the rate in force, i.e. the rate mentioned in the finance act; or
- Most of the case @ 20 %
Other Provision relating to non-furnishing of PAN w.e.f. 1-04-2010
- These provisions will also apply to non-resident where TDS is deductible on payment or credits made to them.
- In the case of payment to a transport operator, tax will not be deductible under section 194C if the transport operator furnishes his PAN to the deductor. If PAN is not furnished, the rate will be 1 per cent for an individual/HUF transporter and 2 per cent for other transporters during October 1,2009 and March 31,2010 and 20 per cent after March 31,2010.
- The provision that TDS would be deductible at the above-mentioned rates, will also apply in case where the deductee files a declaration under section 197A in Form No. 15G or 15H but he does not provide his PAN.
- No Certificate under section 197 will be granted by the Assessing Officer unless the application contains the PAN of the applicant.
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Does Under Sec 194C- Payment/Credit to a Sub-Contractor in Transport Business include Logistics transporter also?
In case of Transporter where as Transporter having the valid PAN No. than we have to submit the decelration to the Income Tax Department in the prescribed format, please send to us the prescribed format if developed by the Income Tax Departmetn, if Not Developed please informed the date of the format which will be developed by the Income Tax Department.
Please update to me thorugh my e.mail
Regards,
(Umesh Rohilla)
Im a Building Contrator and i undertake turnkey civil project. Before 1/4/2010 TDS deductible on my payments was 1 % and i never furnished my PAN no. I want to know whether from after 1/4/2010 20% TDS deduction will be applicable on my case also, if i dont furnish the PAN ?
My firm name is ” Shri Balaji BuildCon “
Im a Building Contrator and i undertake turnkey civil project. Before 1/4/2010 TDS deductible on my payments was 1 % and i never furnished my PAN no. I want to know whether from after 1/4/2010 20% TDS deduction will be applicable on my case also, if i dont furnish the PAN ?
My firm name is ” Shri Balaji BuildCon ”
Its a proprietorship firm.
Those employee, whose monthly salary is less then 13000/- p.m. encluding all benefits is required PAN card ?