PAN-Aadhaar Linking: The Central Board of Direct Taxes (CBDT) has issued a circular giving major relief regarding the provisions of TDS and TCS in the event of death of the deductee and collector before linking of PAN and Aadhaar before May 31, 2024.
The Finance Ministry said that in view of the problems being faced by the taxpayers, the Central Board of Direct Taxes has issued a circular on August 5, 2024, in which the government has given relief in the provisions of TDS and TCS in the Income Tax Act 1961 on the death of the deductee and collector before linking PAN and Aadhaar. In such cases, to redress the grievances of the taxpayers in these cases, if the deductee and collector have died before 31 May 2024 and before completing the option of linking PAN Aadhaar, then according to the circular, the deductor and collector will not have any liability to deduct tax under section 206AA / 206CC of the Income Tax Act in which any transaction has been done till 31 March 2024.
The Finance Ministry said, on April 23, 2024, the Central Board of Direct Taxes had issued a circular to provide relief from higher TDS (TCS) under the Income Tax Act on transactions made till March 31, 2024, and this is a continuation of the same circular which extended the deadline for linking PAN and Aadhaar till May 31, 2024.
CBDT was receiving complaints from taxpayers that the deductee-collectee had died before the last date of linking PAN-Aadhaar i.e. 31 May 2024, due to which they could not link PAN-Aadhaar. In such a situation, the request for tax demand is pending. According to the rules, if the taxpayer fails to link PAN Aadhaar, 20 percent TDS is deducted, which is the rule of deducting 5 percent TCS. To avoid higher TDS TCS, the government had extended the date for linking PAN-Aadhaar to 31 May 2024.
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