PAN-Aadhaar Linking: The Income Tax Department has appealed to taxpayers to link their PAN with Aadhaar before May 31. If this is not done, TDS will be deducted at twice the applicable rate. To avoid loss, you must link your PAN with Aadhaar before the last date of this month.
If you have not yet linked your PAN to Aadhaar, then you have the last chance. You must link your PAN to Aadhaar before 31 May. If you do not do this, you may have to suffer a big loss. Now the Income Tax Department has also advised taxpayers to link their PAN to Aadhaar before the last date of this month. If this is not done, then it is necessary to deduct TDS at twice the applicable rate.
According to the Income Tax rules, if the Permanent Account Number (PAN) is not linked to biometric Aadhaar, then it is necessary to deduct TDS at twice the applicable rate. The Income Tax Department had issued a circular last month stating that if the assessee links his PAN to Aadhaar by the date 31 May, then no action will be taken.
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Income Tax Department appealed
Kind Attention Taxpayers,
Please link your PAN with Aadhaar before May 31st, 2024, if you haven’t already, in order to avoid tax deduction at a higher rate.
Please refer to CBDT Circular No.6/2024 dtd 23rd April, 2024. pic.twitter.com/L4UfP436aI
— Income Tax India (@IncomeTaxIndia) May 28, 2024
The department wrote on the social media platform ‘X’ on Tuesday, “To avoid deduction of tax at higher rate, please link your PAN with Aadhaar before 31st May 2024, if you have not done it already.” In a separate post, the IT department also asked reporting entities including banks, foreign exchange dealers to file SFT by May 31 to avoid penalty. The department said, “The last date for filing SFT (Statement of Specified Financial Transactions) is 31st May 2024. Avoid penalty by filing correctly and on time. ”
A fine can 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 can attract a penalty of up to Rs 1,000 for each ‘default’ day. Penalties can also be imposed for not filing SFT or filing incorrect details. The Income Tax Department keeps an eye on high value transactions made by a person through SFT.
