How to avoid TDS deduction?

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How to avoid TDS deduction?

I do not have PAN. Can I furnish Form 15G/15H for non-deduction of TDS from interest?

Profile photo of Tushar Pol Asked By: Tushar Pol 2 replies 2 helpful answers Last Updated: 3 weeks, 6 days ago
  • Profile photo of Tushar PolTushar Pol
    Participant

    I do not have PAN. Can I furnish Form 15G/15H for non-deduction of TDS from interest?

  • Profile photo of Roohi RasheedRoohi Rasheed
    Moderator

    As per section 206AA, a declaration in Form No. 15G or Form No. 15H is not a valid declaration, if it does not contain PAN of the person making the declaration. If the declaration is without the PAN, then tax is to be deducted at higher of following rates:
    • Rate specified in the relevant provision of the Act
    • Rate or rates in force, i.e., the rate prescribed in the Finance Act
    • At the rate of 20%.

  • Profile photo of Nitesh BindNitesh Bind
    Participant

    Agree with Ms. Roohi Rasheed. If you don’t have the PAN then you cant file the VALID 15G/15H also you could not apply for lower deduction of tax under section 197. In that case, you’ll be simply covered under section 206AA and tax shall be deducted @ The rates given in the act OR 20% whichever is higher.

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