<s>[INST] What will be the rate of TDS under section 194-IB if the payee does not furnish PAN? [/INST] As per s​ection 206AA, if the payee does not furnish PAN, tax shall be deducted at a rate higher of the following:

   • The rate prescribed in the relevant provisions of the act, or

   • The rate or rates in force, or

   • 20%

 However, deduction at a higher rate will prevail subject to the condition that the amount of TDS cannot exceed the amount of rent for the last month of the financial year or the termination of tenancy, as the case may be.​ </s>