Higher tax deduction/tax collection at source for inoperative PAN

Code of Taxation
1

Higher TDS/TCS was made applicable finally from 1.6.2024 for non-operative PAN as per Section 206AA/CC of Income Tax Act. However, in a major relief, there will be no liability on diductor/collector for non-deduction of higher TDS/TCS for non-operative PAN in following cases:

  1. For amounts credited/paid between 1.4.2024 to 31.7.2025 where PAN Adhaar linkage i.e. PAN is made operative by 30.9.2025
  2. For amounts credited/paid after 1.8.2025 and PAN is made operative within 2 months from the end of the month in which such amounts are credited/paid.

CBDT circular dated 21.7.2025 attached for reference.

CS Sharad Bhargava

Circular-No-09-2025_2372025155757541 (1).pdf (800.7 KB)