<h1>Higher TDS Rate at 20% for Missing PAN in Income Tax Act Effective April 1, 2010. Ensure PAN Compliance.</h1> A new tax deduction at source (TDS) provision under the Income Tax Act 1961 will take effect from April 1, 2010. It mandates a higher TDS rate of 20% on transactions lacking the Permanent Account Number (PAN) of the deductee, applicable to both residents and non-residents. Certificates for lower or no deduction are invalid without PAN. Deductors must ensure PAN is quoted in all documents to avoid higher TDS rates. Deductees are advised to obtain and communicate their PAN by March 31, 2010. The process for obtaining a PAN is straightforward and can be done through various channels.