PAN-Aadhaar Link: If you have not yet linked your PAN card with Aadhaar, then do not worry. Today there is a very useful news for you. Income Tax Department and Central Board of Direct Taxes (CBDT) has given great relief to such taxpayers who get their PAN-Aadhaar linked by 31 May 2024. The Income Tax Department said that if taxpayers link their PAN with Aadhaar by May 31, no action will be taken for lower 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 the omission of short deduction/collection of TDS/TCS while carrying out such 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 that if PAN is activated (after linking with Aadhaar) on or before May 31, 2024, in respect of transactions made up to March 31, 2024, So there will be no liability on the deductor/collector to deduct/collect tax (at higher rate).
Also Read: These rules related to money will change from May 1, know what will be the impact on your pocket
What do experts say
Sandeep Sehgal, partner (tax) at AKM Global, said the circular provides 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. Let us tell you that the last date for linking Aadhaar card with PAN card was given by the Central Government as 30th June 2023. After this, the PAN cards of 11.5 crore people who did not link PAN card with Aadhar card have been canceled by the government. This information was given by the Central Board of Direct Taxes in the information sought under the Right to Information.
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