This discussion clarifies the TDS deduction rules when a PAN card is inoperative at the time of deduction but becomes operative before return filing. Generally, TDS should be deducted at the normal rate. Importantly, if the PAN becomes operative due to Aadhaar linkage by 31st May 2024, there's no liability to deduct TDS at the higher 20% rate for transactions up to 31st March 2024.
23 April 2024
If pan were inoperative and valid at the time of Tds deduction but operative and valid before return filing at what rate TDS should be deducted
24 April 2024
THE TRANSACTION ENTERED UPTO 31MARCH 2024 AND IN CASES WHERE PAN BECOME OPERATIVE DUE TO LINKAGE WITH AADHAR ON OR BEFORE 31/05/2024 THERE IS NO LIABILITY TO DEDUCT TDS AT HIGHER RATE @20%