CBDT has partially modified the consequences of an inoperative Permanent Account Number (PAN). Previously, if a PAN was inoperative due to a lack of Aadhaar linkage, higher rates of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) under Sections 206AA or 206CC of the Income-tax Act, were applicable. Now, CBDT has provided that for amounts paid or credited between 1st April 2024, and 31st July 2025, deductor/collector will not face higher TDS/TCS liability if the deductee/collectee PAN becomes operative (linked with Aadhaar) by 30th September 2025. Further, for payments or credits made on or after 1st August 2025, the relief applies if the PAN is made operative within two months from the end of the month in which the amount is paid or credited.