I-T Dept Issues Reminder: Link PAN with Aadhaar by May 31 to avoid higher TDS; here's how
Aadhaar by May 31, 2024. The reminder, posted on X (formerly Twitter), emphasises the importance of meeting this deadline to avoid higher tax deductions at source (TDS).On May 28, 2024, the Income Tax Department used social media to alert taxpayers about the critical deadline.
The department's post highlighted that failure to link PAN with Aadhaar would result in an increased rate of TDS."Kind attention taxpayers, please link your PAN with Aadhaar before May 31, 2024... Linking your PAN with your Aadhaar by May 31 ensures you don’t face higher tax deduction/tax collection under Section 206AA and 206CC of the Income Tax Act, 1961, due to an inoperative PAN for transactions entered into before March 31, 2024," the post read.Taxpayers who do not comply with the linking requirement by the stipulated date will face significant financial repercussions.
Specifically, they will be subject to higher tax deductions and collections as per Sections 206AA and 206CC of the Income Tax Act, 1961. This measure aims to enforce compliance and streamline tax administration.This reminder follows a previous circular issued on April 23, 2024, by the Central Board of Direct Taxes (CBDT).
The circular, identified as CBDT Circular No. 6/2024, detailed the regulations surrounding PAN-Aadhaar linking and outlined the consequences for non-compliance.
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