TDS on rent when PAN not furnished: section 206AA requires deduction at the higher applicable rate, subject to a cap.

TDS under section 194-IB is affected by section 206AA when the payee does not furnish PAN: tax must be deducted at the higher of the prescribed rate, the rates in force, or the default statutory rate, subject to the cap that TDS cannot exceed the rent payable for the last month of the financial year or on termination of the tenancy.

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