Deductors and collectors should be aware that if the PAN status of the deductee or collectee is marked as 'Inoperative', higher rates of TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) will apply. The Income Tax Department has emphasized that taxpayers must ensure their PAN status is active to avoid these higher rates. It is important for businesses and individuals to verify the status of PANs before processing any deductions or collections to ensure compliance and avoid any unnecessary financial burden.