[ compiled answer ]
law as at 14 Aug 2026 · settled
What withholding rate applies when the non-resident payee has no PAN?
The compiled answer
s.397(2), Income-tax Act 2025 (old s.206AA): deduction at the higher of the relevant provision's rate, the rates in force, or 20%. But s.397(2)(c)(ii) preserves the Rule 37BC-lineage escape: a non-resident without PAN avoids the penal rate by furnishing the prescribed particulars (TRC, contact details, foreign TIN). Note the trap: the penal floor (20%) numerically equals the s.207(2) rate, but they are different provisions with different surcharge/cess and treaty-comparison logic.
Pinpoint
s.397(2), Income-tax Act 2025
String-verified quote
“tax shall be deducted at the higher of the following rates”
source: provision:IN.ITA2025.S397-2 — verified at load; a quote that stops matching its source is a compile error
Computed by a deterministic engine over compiled law — no generative model in the evaluation path. JSON twin: /t/pan_gate_s397.json · Ask with YOUR facts: GET /compute?lookup=… · MCP: POST https://lrlabs.ai/mcp (lookup_compiled_rule)