Income Tax Rules No action for short deduction of TDS TCS if PAN linked with Aadhaar by 31 May 2024

Income Tax Department: The Income Tax Department has given big relief to taxpayers and businessmen regarding TDS (TCS) deduction. The Income Tax Department has said that no action will be taken against taxpayers and businessmen for short deduction of TDS if taxpayers link PAN with Aadhaar by May 31, 2024.

According to the rules of the Income Tax Department, if the PAN number is not linked with Aadhaar, then there is a provision for TDS deduction at double the rate. But the Central Board of Direct Taxes said that it has received several complaints from taxpayers that they have received notices in which it is written that they have under-deducted or collected TDS/TCS while making such transactions. of omissions where PANs were inactive.

In such cases, deduction has not been made at the higher rate, hence the Income Tax Department has demanded tax on processing the TDS/TCS statement. To settle such complaints, CBDT has said that for transactions done till March 31, 2024 and in cases where PAN has become operative due to linking of PAN with Aadhaar before May 31, 2024, in such cases taxpayers will not be charged tax at the higher rate. have to give.

Sandeep Sehgal, partner tax at AKM Global, said that due to the circular, tax deductors have got some relief in which PAN had become inactive due to it not being linked with Aadhaar. He said that in such cases, taxpayers should link PAN with Aadhaar as soon as possible. TDS is deducted on different types of sources of income. Which includes salary, investment, bank FD, commission. The government receives tax only through TDS. The responsibility of depositing TDS into the government account rests with the person or company making the payment.

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