Under the Income-tax Act, 2025, if PAN is not furnished, TDS is generally deducted at which rate?…
TDS is deducted at the highest of the specified rate, the rate in force and 20% in the stated general case. Failure to furnish PAN therefore does not invariably mean…
Choose your answer
Under the Income-tax Act, 2025, if PAN is not furnished, TDS is generally deducted at which rate? Exclude cases subject to a special exception or the 5% substitution.
Answer and explanation
Correct answer D
TDS is deducted at the highest of the specified rate, the rate in force and 20% in the stated general case. Failure to furnish PAN therefore does not invariably mean deduction at a flat 20%.
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Maharashtra and Goa SET (MH SET)