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of <h1>Tax Deduction Without PAN: Section 194-IB Requires Highest Rate, Capped at Last Month's Rent Per Section 206AA.</h1> If the payee does not provide a PAN under section 194-IB, tax must be deducted at the highest of the specified rates: the rate prescribed by the act, the prevailing rate, or 20%, as per section 206AA. However, the deducted tax amount cannot exceed the rent amount for the last month of the financial year or the tenancy termination month.
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