What is Section 206AA — PAN not provided?

Key mapping

If the deductee does not provide a PAN, TDS is deducted at 20% or the applicable rate, whichever is higher.

Explanation

Section 206AA of IT Act 1961 (carried forward under IT Act 2025) requires TDS at 20% where the payee fails to provide their PAN. This applies to ALL TDS codes — so a contractor deducted at 1% (Code 1023) would face 20% TDS if they haven't provided PAN. The same applies to interest, professional fees, rent etc. If PAN is later provided and linked to Aadhaar, TDS certificates and corrections can be filed. Verify on the income-tax portal before filing.

Related terms and sections

206AA PAN not provided 20 percent higher TDS PAN deductee TDS compliance

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Related sections

IT Act 2025 Section Mapper →All IT Act changes →

All section references are sourced from the Income Tax Act 2025 (official gazette, incometaxindia.gov.in) and cross-referenced against CBDT's comparative statement. Always verify on the official portal before filing. This page is for reference only and does not constitute legal or tax advice.

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