The Income Tax Department has announced relief for taxpayers who link their PAN (Permanent Account Number) with Aadhaar by May 31. According to tax regulations, failure to link PAN with Aadhaar results in TDS (Tax Deducted at Source) being deducted at twice the usual rate.
Details of the Relief:
- Deadline: Taxpayers have until May 31, 2024, to link their PAN with Aadhaar.
- Impact: Without linkage, TDS deductions would occur at double the standard rate due to inactive PAN status.
- Complaints: The Central Board of Direct Taxes (CBDT) reported receiving numerous complaints from taxpayers about receiving notices for lower deductions on transactions where PAN was inactive.
CBDT Statement:
The CBDT clarified that for transactions up to March 31, 2024, no action will be required on the part of the deductor or collector regarding higher rate deductions if the PAN becomes active (post linkage with Aadhaar) by May 31, 2024.
Expert Commentary:
Sandeep Sehgal, partner at AKM Global, noted that the circular provides relief to deductors in cases where the PAN was inactive due to non-linkage with Aadhaar. He advised taxpayers to link their PAN with Aadhaar as soon as possible to avoid complications.
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