PAN-Aadhaar Linking Update: CBDT’s Relief on TDS/TCS in Demise Cases Explained

PAN-Aadhaar Linking Update

PAN-Aadhaar Linking Update: The government has imposed a higher TDS of 20% on people who haven’t linked their Permanent Account Number (PAN) card with their Aadhaar card.

The Central Board of Direct Taxes (CBDT) is in charge of direct taxes and reported in a recent memo that if a deductee or collector whose PAN and Aadhaar is not linked and dies on or before May 31, 2024, then that person won’t be charged with any higher taxes.

In a recent Circular No. 8/ 2024 issued August 5, 2024, the Central Board of Direct Taxes (CBDT) said, ‘ Several grievances have been received from the taxpayers where they have cited instances of demise of the deductee/collectee during the said period (i.e. on or before 31.05.2024) before the option to link PAN and Aadhaar could have been exercised. In such cases, tax demands are standing against the deductor/collector as a result of failure to link PAN and Aadhaar of the deceased person.”

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The Central Board of Direct Taxes (CBDT) further stated, “In order to redress such grievances of the taxpayers, the Board, hereby specifies that in respect of cases where higher rate of TDS/TCS was attracted under section 206AA/206CC of the Act pertaining to the transactions entered into upto 31.03.2024 and in case of demise of the deductee/collectee on or before 31.05.2024 i.e. before the linkage of PAN and Aadhaar could have been done, there shall be no liability on the deductor/collector to deduc/collect the tax under section 206AA/206CC, as the case maybe.”

“The deduction/collection as mandated in other provisions of Chapter XVII-B or Chapter XVII-BB of the Act shall be applicable.”

The last date to link your PAN card with your Aadhaar card was until June 30, 2023. If you have crossed the deadline and have linked your PAN card with your Aadhaar card, then your PAN card might stop working and you will be charged with higher TDS rate on your transactions.

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