Income Tax Department's announcement..! If PAN is not linked to Aadhaar before 31st May, double TDS will be deducted, know the details here

PAN-Aadhaar Linking: The Income Tax Department has advised taxpayers to link PAN with Aadhaar by May 31 to avoid tax deduction at a higher rate. According to the Income Tax rules, if the Permanent Account Number (PAN) is not linked to the biometric Aadhaar, TDS will be deducted at twice the applicable rate. The Income Tax Department had issued a circular last month, stating that if someone's PAN is linked to Aadhaar by the due date of May 31, no action will be taken.

Last date is till 31st May

The Income Tax Department (IT Department) on Tuesday wrote on social media platform 'X', “Link your PAN with Aadhaar before May 31, 2024 to avoid tax deduction (TDS) at higher rate. If you have not linked PAN yet, keep this deadline in mind.” In a separate post, the IT department has also asked reporting entities, including banks, foreign exchange dealers, to file statement of financial transactions (SFT) by May 31 to avoid penalties. “The last date for filing SFT is May 31, 2024,” the department said. Avoid penalties by filing correctly and on time.

A fine of Rs 1000 will be imposed

Reporting entities Foreign exchange dealers, banks, sub-registrars, NBFCs, post offices, bond/debenture issuers, mutual fund trustees, companies paying dividends or buying back shares are required to file SFT returns with the tax authorities. Delay in filing SFT returns attracts a penalty of up to Rs 1,000 for each 'default' day. Penalties can also be levied for not filing SFT or filing incorrect details. The income tax department keeps a close watch on high value transactions made by an individual through SFT.

How to link PAN-Aadhaar?

There are many ways to link PAN with Aadhaar. You can do it online or by sending an SMS. We are describing its process below.

How to link PAN-Aadhaar online?

• Open the Income Tax e-filing portal by visiting this link https://incometaxindiaefiling.gov.in/.
• Register if not already registered. Your PAN number (Permanent Account Number) will be your user ID.
• Now login by entering your user ID, password and date of birth.
• A pop-up window will appear asking you to link your PAN with Aadhaar. If it does not appear, go to 'Profile Settings' and click on 'Link Aadhaar'.
• Now here the details of date of birth and gender recorded on the PAN will already be visible.
• Now match these details with your Aadhaar details. If these details do not match in both the documents, then you have to first correct the wrong one.
• If the details match then enter your Aadhaar number and click on “Link Now” button.
• A pop-up message will appear, informing you that your PAN card has been linked to the Aadhaar card.
• You can also visit https://www.utiitsl.com/ or https://www.egov-nsdl.co.in/ to link your PAN with Aadhaar.

PAN-Aadhaar Linking: Link through SMS

• Type your UIDPAN on your phone.
• Enter 12 digit Aadhaar number.
• Then write the 10 digit PAN number.
• Now send the message to 567678 or 56161.