PAN Not Mandatory for Lower TDS Under DTAA : Gujarat High Court

The Gujarat HC ordered that a Permanent Account Number(PAN) is not required to claim a lower Tax Deducted at Source (TDS) rate under Double Taxation Avoidance Agreement (DTAA.)

The bench held that Section 206AA, which mandates 20% TDS if PAN is not furnished, does not override Section 90(2) of the Income Tax Act, which prioritises DTAA benefits when more favourable to taxpayers.

The Court upheld the Income Tax Appellate Tribunal’s decision in favour of Adani Wilmar and dismissed the tax department’s appeals.