ITR

TDS deducted at a higher rate because PAN was inoperative

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If PAN is inoperative, for example because it was not linked with Aadhaar, deductors apply a higher TDS rate. The tax is still credited to you and the excess comes back as a refund after you file, once PAN is operative.

Provisions

Sec 206AA, Income-tax Act 1961 (now Sec 397(2)); Sec 139AA, Income-tax Act 1961 (now Sec 262)

Analysis

Link PAN and Aadhaar after paying the fee to make the PAN operative. Then ask the deductor whether it can correct the statement for the current quarter. Claim the full TDS in your return; any excess over your tax is refunded once PAN is operative.

Close

  1. Check PAN-Aadhaar link status.
  2. Link after paying the fee if needed.
  3. Inform the bank once PAN is operative.
  4. Claim full TDS in your return.
  5. Track the refund.

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