TDS Software | PAN Verification

PAN verified live with CBDT, before the bill posts.

Every vendor PAN checked against the Income Tax Department's PAN status API at vendor onboarding and re-checked at every bill capture. Active, inoperative, blocked or unregistered status drives the surcharge bucket and the Section 206AA rate.

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How it works

PAN, checked where it matters.

Step 01

Verified at onboarding

Vendor onboarding asks for PAN and triggers the live CBDT check. Active, inoperative or unregistered status stored on the vendor master with timestamp.

Step 02

Re-checked at bill capture

Each bill triggers a re-check. PAN that was active last quarter but inoperative today triggers the higher-rate deduction at the line.

Step 03

Status drives the rate

Section 206AA (no PAN or invalid PAN): higher of 20% or double the normal rate. Section 206AB (specified non-filer): higher of 5% or twice the rate.

Step 04

Vendor follow-up workflow

Inoperative PANs trigger a vendor portal task with a templated email asking the vendor to reactivate. Tracking captured in the audit trail.

What the system does

Capability, input, output.

Capability	Input	Output
Live CBDT check	Vendor PAN	Active / inoperative / blocked / unregistered
Onboarding gate	New vendor onboarding	Block onboarding for invalid PAN until resolved
Re-check at capture	Bill capture event	Updated PAN status per bill
Section 206AA / 206AB	PAN status + filer status	Higher-rate deduction applied
Vendor follow-up	Inoperative PAN list	Templated email + portal task per vendor

Live CBDT check

Input

Vendor PAN

Output

Active / inoperative / blocked / unregistered
Onboarding gate

Input

New vendor onboarding

Output

Block onboarding for invalid PAN until resolved
Re-check at capture

Input

Bill capture event

Output

Updated PAN status per bill
Section 206AA / 206AB

Input

PAN status + filer status

Output

Higher-rate deduction applied
Vendor follow-up

Input

Inoperative PAN list

Output

Templated email + portal task per vendor

Compliance + integrations

PAN, the way the IT Act expects.

Section 206AA and 206AB combined for the right rate. Live CBDT check at every touchpoint. Vendor onboarding gate prevents onboarding with an invalid PAN.

Regulations we work within

Section 206AA, Income Tax Act

Higher-rate TDS where PAN is not furnished or invalid.
Section 206AB, Income Tax Act

Higher-rate TDS for specified non-filers (where applicable).
Rule 31A

PAN of the deductee is captured per Rule 31A for return filing.

Connects to

CBDT PAN status API (live)

PAN Verification FAQ

What buyers ask.

Bulk PAN verification. Supported?

Yes. Bulk verification of the existing vendor master against CBDT runs as a one-click action. The vendor master refreshes with current status; inoperative PANs surface for follow-up.

What if a vendor's PAN was active when we onboarded but is now inoperative?

Re-check at the next bill capture catches the change. The system applies the Section 206AA rate from that bill forward and surfaces a vendor follow-up task to reactivate the PAN.

Foreign vendors without PAN. How is that handled?

Section 206AA rate (20% or double the normal rate, whichever higher) applies to deductions on payments to foreign vendors without PAN. Where DTAA applies, the lower DTAA rate can be used if a TRC (Tax Residency Certificate) is on file.

Related features

Bulk-verify your vendor PANs in one click.

Connect your vendor master, free. Every vendor's PAN checks against CBDT in minutes. Inoperative PANs surface with a follow-up workflow ready to fire.