look news india
PAN-Aadhaar Linking: The Central Board of Direct Taxes (CBDT) issued a circular giving major relaxation in TDS and TCS provisions in case of death of deductee and collector before linking of PAN and Aadhaar card before May 31, 2024.
What did the Finance Ministry say?
The Finance Ministry said, 'Keeping in view the problem of taxpayers, the Central Board of Direct Taxes has issued a circular dated August 5, 2024. In which the government has announced exemption in TDS and TCS provisions under the Income Tax Act 1961 in case of death of deductee and collector before linking PAN and Aadhaar card. Meanwhile, keeping in view the problem of taxpayers in case of death of deductee and collector before completion of the option of linking PAN and Aadhaar card before 31st May 2024, the Income Tax Act will be applicable on the deductee and collector in any transaction done till March 31, 2024. There will be no liability of tax deduction under section 206AA / 206CC as stated in the circular.'
Big relaxation in the provision of TDS-TCS
The Finance Ministry said that a circular has been issued by the Central Board of Direct Taxes on April 23, 2024 to provide relief of TDS and TCS under the Income Tax Act on transactions made up to March 31, 2024. In which the time for linking PAN and Aadhar card has been extended.
CBDT receives many complaints from taxpayers
CBDT was receiving complaints from taxpayers that they could not link PAN-Aadhaar card as the deductor and collector died before the last date of linking PAN-Aadhaar card i.e. 31 May 2024. In such a situation, the application of tax demand is pending. According to the rules, if the taxpayer fails to link PAN-Aadhaar card then 20 per cent TDS and 5 per cent TCS is to be deducted. While the government has extended the date of PAN-Aadhaar card linking to May 31, 2024 to avoid high TDS-TCS.