PAN-Aadhaar Linking: The Income Tax Department said that if taxpayers link their PAN with Aadhaar by May 31, no action will be taken for less deduction of TDS.
PAN- Aadhaar Linking: Income Tax Department said that if taxpayers link their PAN with Aadhaar by May 31, no action will be taken for less deduction of TDS. As per Income Tax rules, if the Permanent Account Number (PAN) is not linked to the biometric Aadhaar, ‘Tax Deducted at Source’ (TDS) will be charged at double the applicable rate.
What did CBDT say?
The Central Board of Direct Taxes (CBDT) said in a circular that it has received several complaints from taxpayers that they have received notices in this regard. The notice states that he has committed omission to deduct/collect short TDS/TCS while carrying out transactions where PAN was inoperative. In such cases, since deduction/collection has not been made at the higher rate, the Department has raised tax demand during processing of TDS/TCS statements.
To address the complaints made in this regard, the CBDT said, “If PAN is activated (after linking with Aadhaar) on or before May 31, 2024, in respect of transactions made up to March 31, 2024, , then there will be no liability on the deductor/collector to deduct/collect tax (at higher rate).
Sandeep Sehgal, partner (tax) at AKM Global, said the circular gives some relief to tax deductors in cases where PAN is inoperative due to it not being linked with Aadhaar. He said that in such cases, taxpayers should link PAN with Aadhaar as soon as possible.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
