If payee not furnished the PAN, then higher rate will be applicable.
Now the payer will deduct TDS at a higher rate but how can he deposit such an amount as there is no PAN available.
If the payee does not furnish their PAN, the payer is required to deduct TDS (Tax Deducted at Source) at a higher rate under the Income Tax Act. However, if the payee does not provide their PAN, it is still possible for the payer to deposit the TDS amount with the government.
In such cases, the payer is required to use a special challan called "Form 281" to deposit the TDS amount. This form does not require the payee's PAN, but instead requires the payer to provide their own details, such as their name, address, and TAN (Tax Deduction and Collection Account Number).
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