PAN-Aadhaar linking: Tax Department defers penalty on TDS till May 31. Here is how to link both

Providing alleviation to those taxpayers who failed to nexus their Permanent Account Number (PAN) and Aadhaar Number by the June 30, 2023 deadline, the Income Tax Department has relaxed the deadline for imposing penalties connected specified cases and said that nary enactment volition beryllium taken for a abbreviated deduction of TDS successful lawsuit the assessee links his/her PAN with Aadhaar by May 31. 

As per income taxation norms, an assessee needs to nexus his PAN with his biometric Aadhaar number, and if some are not linked, TDS is required to beryllium deducted astatine treble the applicable rate.

The Central Board of Direct Taxes (CBDT), successful a circular connected April 24, said "Several grievances person been received from taxpayers that they are successful receipt of notices intimating that they person committed default of ‘short-deduction/collection’ of TDS/TCS portion carrying retired the transactions wherever the PANs of the deductees/collectees were inoperative. In specified cases, arsenic the deduction/collection has not been made astatine a higher rate, demands person been raised by the section against the deductors/collectors portion processing of TDS/TCS statements.

To redress the grievances faced by specified deductors/collectors, the CBDT specified that for “the transactions entered into up to March 31, 2024, and successful cases wherever the PAN becomes operative (as a effect of linkage with Aadhaar) connected oregon earlier May 31, 2024, determination shall beryllium nary liability connected the deductor/collector to deduct/collect the taxation (at higher rate)".

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Published: 26 Apr 2024, 03:26 PM IST