PAN-Aadhaar Linkage Deadline: CBDT Eases TDS/TCS Rules For These Taxpayers
The decision is a response to instances were an individuals passed away on or before May 31, 2024, and could not complete the mandatory PAN-Aadhaar linkage prior to their demise.
The Central Board of Direct Taxes, in a recent circular, relaxed the provisions of Tax Deducted at Source and Tax Collected at Source in cases where the deductee or collectee has passed away before linking their Permanent Account Number with Aadhaar.
The decision is a response to the difficulties faced by taxpayers in light of recent regulations requiring PAN-Aadhaar linkage. Many instances were reported where individuals passed away on or before May 31, 2024, and could not complete the mandatory PAN-Aadhaar linkage prior to their demise.
"In view of genuine difficulties being faced by taxpayers, CBDT issued Circular No. 8 of 2024 dated 05.08.2024, and vide the same, the government has relaxed the provisions of TDS/TCS as per the Income-tax Act, 1961 (the ‘Act’) in the event of death of deductee/collectee before linking of PAN and Aadhaar," the circular said.
To address these concerns, the new circular stipulates that no liability for TDS/TCS under sections 206AA and 206CC of the Income-tax Act, 1961, will fall on the deductor or collector for transactions conducted up to March 31, 2024.
This move follows a previous directive issued on April 23, 2024, which extended the deadline for linking PAN and Aadhaar to May 31, 2024. The extension aimed to mitigate the impact of higher TDS/TCS rates due to the non-linkage of PAN and Aadhaar on transactions conducted until March 31, 2024.
