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 * Link PAN with Aadhaar to avoid TDS Penalties – Here's How-to do it


LINK PAN WITH AADHAAR TO AVOID TDS PENALTIES – HERE'S HOW-TO DO IT

·


The Income Tax Department has extended the deadline for imposing penalties on
taxpayers who missed linking their Permanent Account Number (PAN) with their
Aadhaar Number by the June 30, 2023 deadline. Additionally, the department
announced that no action will be taken regarding short deductions of Tax
Deducted at Source (TDS) if taxpayers link their PAN and Aadhaar by May 31. This
extension provides relief to those who missed the original deadline.






According to income tax regulations, taxpayers must link their biometric Aadhaar
number to their PAN; failure to do so results in TDS being withheld at double
the relevant rate.




The Central Board of Direct Taxes (CBDT) stated in a circular dated April 24:
"Taxpayers have lodged several grievances stating that they received notices
indicating non-compliance with the 'short-deduction/collection' requirements of
TDS/TCS during transactions where the PANs of the deductees/collectees were
non-functional." In some cases, the department has initiated claims against
deductors/collectors during the processing of TDS/TCS statements because the
deduction or collection was not done at a higher rate.




The CBDT announced that for transactions conducted up to March 31, 2024, and
where the PAN becomes operative (due to linkage with Aadhaar) on or before May
31, 2024, deductors/collectors will not be liable to deduct/collect tax at a
higher rate. This measure addresses the complaints made by such
deductors/collectors.




If You Fail To Link Your With Your Aadhaar - Know the Consequences



 * Your PAN will stop working.
 * Interest on outstanding tax refunds will not be paid out.
 * A greater rate of TDS deduction will be necessary.
 * TCS will need to be collected at high interest.

Steps to link PAN with Aadhaar Number:-





 * Visit incometaxindiaefiling.gov.in to access the Income Tax Department’s
   website.
 * Under the “Quick Links” section, select the “Link Aadhaar” option.
 * After entering your Aadhaar and PAN, select “Validate.”
 * After entering your cellphone number and name as it appears on your Aadhaar
   card, select “Link Aadhaar.”
 * After entering the OTP that was sent to your mobile device, select
   “Validate.”





Filed in: Aadhaar , How TO , PAN Card

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