Conditions under section 397(2)(c) for non-application of deduction of tax at higher rate, in case of non-residents- Rule 217(new)/ Rule

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....rresponds to Rule 37BC of Income Tax Rules,1961. Rule 217(1) - Relaxation from higher-rate deduction where PAN is not available A non-resident individual/entity other than a company, or a foreign company, who does not have a PAN is permitted to avoid the higher-rate TDS mechanism under section 397(2)(b)(i), provided the prescribed information and documents are furnished to the deductor. T....

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....ons not required to obtain PAN The higher-rate deduction provision under section 397(2)(b)(i) will also not apply where the non-resident is otherwise not required to apply for PAN under section 262 and the rules prescribed thereunder. Comparative Analysis: Rule 217 of Income-tax Rules, 2026 vs. Rule 37BC of Income-tax Rules, 1962   Rule 217 essentially carries forward Rule 37BC of....