Section 206CC - Requirement to furnish Permanent Account Number by collectee - Income Tax - Ready Reckoner - Income Tax

Requirement to furnish Permanent Account Number by collectee - Section 206CC [ W.e.f. 01.04.2017 ] Tax collection at higher rate Notwithstanding anything contained in any other provisions of this Act, any person paying any sum or amount, on which tax is collectible at source under Chapter XVII-BB (herein referred to as collectee) shall furnish his Permanent Account Number (PAN) to the person responsible for collecting such tax (herein referred to as collector), failing which tax shall be collected at the higher of the following rates , namely:- (i) at twice the rate specified in the relevant provision of this Act; or (ii) at the rate of 5% [Proviso Inserted by FA, 2023 w.e.f. 1st day of July, 2023 - Provided that the rate of tax collection at source under this section shall not exceed 20% ] Declaration without PAN under section 206C(1A) No declaration u/s 206C(1A) in Form No. 27C shall be valid unless the person furnishes his PAN in such declaration. In case any declaration becomes invalid u/s 206CC(2) , the collector shall collect the tax at source in accordance with the provisions of section 206CC(1). Lower tax collection certificate No certificate u/s 206C(9) shall be granted unless the application in form No. 13 made under that section contains the PAN of the applicant. Pan to be quoted in all correspondance The collectee shall furnish his PAN to the collector and both shall indicate the same in all the correspondence, bills, vouchers and other documents which are sent to each other. Where the PAN provided to the collector is invalid or does not belong to the collectee , it shall be deemed that the collectee has not furnished his PAN to the collector and the provisions of section 206CC(1) shall apply accordingly. Not applicable if collectee is Non-resident The provisions of this section shall not apply to a non-resident who does not have permanent establishment in India. Explanation .-For the purposes of this sub-section, the expression permanent establishment includes a fixed place of business through which the business of the enterprise is wholly or partly carried on. Consequences of PAN becoming inoperative as per the Rule 114AAA [ Circular no. 03/2023 dated 28.03.2023 ] (iv) where tax is collectible at source under Chapter XVII-BB in case of such person, such tax shall be collected at higher rate, in accordance with the provisions of section 206CC .