Section 206AA under the
Income-tax Act, 2025
Higher TDS/TCS rate where PAN is not furnished
Topic
Higher TDS/TCS rate where PAN is not furnished — TDS provisions under the Income-tax Act, 2025 (Act 30 of 2025).
What carried over
The substance of this provision was not changed by the re-write. What moved is the citation.
Substance preserved: deduct at the higher of the specified rate, rates in force, or 20% (5% for s.393(1) Sl. Nos. 8(ii)/8(v), i.e. old 194Q/194-O). TCS counterpart (old 206CC) is s.397(2)(b)(ii) — twice the specified rate or 5%, capped at 20%. Non-resident carve-outs for long-term bond interest are preserved at s.397(2)(c), and the 194-IB rent cap at s.397(2)(e). TAN (old 203A) is s.397(1).
Source
Verified against bare text of s.397(2)(a)-(h) in ICAI publication; ICAI concordance row for s.397 lists 203A, 206AA, 206CC, 200, 206A, 206C.
CBDT publishes its own correspondence utility on incometaxindia.gov.in and that is the authority. Spot-check anything high-stakes there before you rely on it.
This is a navigational aid for the 1961 → 2025 transition, not tax advice. It helps you find the right place in the new Act when you already know the old section. Confirm every citation against the bare Act and against CBDT's own correspondence utility before relying on it in a return, certificate, notice reply or opinion. The source text used here is the Act as passed, so any rate or threshold amended by the Finance Act, 2026 is not reflected; section numbers are unaffected.