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of <h1>Tax Deduction Rules: No PAN? Expect Highest Tax Rate Under Section 206AA of the Income Tax Act.</h1> Under Section 206AA of the Income Tax Act, if a recipient does not provide their Permanent Account Number (PAN) to the deductor, tax is deducted at the highest of three rates: the rate specified in the relevant provision of the Income-tax Act, the rate or rates currently in force, or a flat rate of 20%.
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