TDS at higher rate u/s 206AA

Dear Poonam,

As per the newly inserted section 206AA of the Income Tax Act tax is to be deducted at the rate of 20% in case where PAN is not provided. However as per the interpretation in CIT vs. Davy Ashmore India Ltd. (1991, 190 ITR 626 Cal), it was held that Tax treaties prevail over domestic laws.

Thanks Bhavin. one more query, if dedutor has deducted tax @ 10% while making payment  u/s 195. how he will file e-tds return? because if PAN is not mentioned, he can not validate the e-tds return.

Dear poonam,

Pls tell me what rate under DTAA is applicable in ur case.

Rate applicable under DTAA is 10%

Dear Poonam,

In this case of section 195 even if pan is not mentioned in TDS return, it can be validated and there will not be any querry for not mention of PAN.

Try it if any further querry, feel free to ask.

If PAN is not mentioned then it does not validate the return. If we select

 Then FVU is generated. Please advi