May 31 last date.. good news for PAN-Aadhaar linked.. Is there such a thing in TDS exemption..
The Income Tax department has given relief and said that no action will be taken on deducting less TDS if Aadhaar is linked with PAN till May 31.
PAN-Aadhaar Link
The Income Tax Department has issued an important message to taxpayers and traders regarding TDS (TCS) deduction. No action will be taken against taxpayers and merchants for small deduction of TDS if taxpayers link PAN with Aadhaar by May 31, 2024, the Income Tax Department said.
PAN
As per Income Tax Department rules, if Aadhaar is not linked with PAN, TDS will be exempted on double payment. But the Central Board of Direct Taxes said that it has received many complaints from taxpayers. A written notice has been received that they have under-deducted or collected TDS/TCS while making such transactions.
Aadhaar
In such cases, higher rate of deduction is not made and hence Income Tax Department has requested tax to process TDS/TCS return. To address such complaints, the CBDT has said that for transactions made up to march 31, 2024 and in cases where the PAN is functional because the PAN is linked to Aadhaar before May 31, 2024, taxpayers will not be charged the higher rate.
Income Tax Rules
He said that since PAN was not linked with Aadhaar, PAN was defunct and tax exempts got some relief. In such cases, taxpayers should link PAN with Aadhaar as soon as possible. TDS is deducted on different sources of income.
TDS
This includes salary, investment, bank FD, commission. government collects tax only through TDS. The responsibility for depositing TDS in the government account rests with the paying person or organization.
