Deductors can collect TDS at normal rates if PAN is linked to Aadhaar by May 31

TDS at normal rates

TDS at normal rates:For those who haven’t linked their Permanent Account Number (PAN) with Aadhaar, the tax deducted at source (TDS) rate is supposed to be double the normal rate.

However, after numerous complaints, the burden of deducting excess TDS on the seller has been waived under certain circumstances. The government’s recent move aims to ease the pressure on entities collecting Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) at regular rates.

Read Also: I-Tax Department sets up control room for cash transactions

This means that if a PAN became “inoperative” due to its non-linkage with Aadhaar and caused a problem with a tax deduction, the deductor won’t face penalties for deducting less tax than required.

This relief is, however, provided as long as the deductee links their PAN with Aadhaar and makes it usable again by May 31, 2024. As a result, deductors are no longer liable to pay the difference in income tax rates.

This measure is a response to numerous notices issued to deductors for shortfalls in tax deduction due to inoperative PANs.

Read Also: CBDT asks self-reporting orgs to file details of high-value transactions by June 30, 2024

To address such instances, deductors should ensure that the PAN of the deductee is linked with Aadhaar, preferably by May 31, 2024, for transactions conducted until March 31, 2024.

It’s crucial to note that this relief applies only to transactions up to March 31, 2024. Therefore, for transactions occurring after April 1, 2024, it’s essential to ensure that the PAN of the deductee is linked with Aadhaar and remains valid. Deductors can verify the validity of PAN on the Income Tax portal.

Overall, this circular aims to simplify the TDS/TCS process and provide relief to deductors while promoting compliance with Aadhaar linkage requirements.

Read Also: Can Salaried employees change Tax regime when filing Income Tax Return?
Disclaimer: The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon.
Also, and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.

For Collaborating with us-

Tags: Uncategorized

Related Articles

No results found.

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed