The Income Tax Department said on Tuesday that taxpayers should link their PAN card and Aadhaar by May 31. In case of not doing so, you may have to pay more tax.
How much tax will be deducted?
According to the rules of the Income Tax Department, if your Permanent Account Number (PAN) is not linked with biometric Aadhaar, then Tax Deduction at Source (TDS) will be deducted at double the applicable rate.
The department had also issued a circular last month. It said that if those people who have less TDS deducted from their accounts link their PAN and Aadhaar by May 31, they will not need to pay more TDS. Also, no action will be taken against them.
The Income Tax Department has posted on the social media platform X, ‘If you have not linked your PAN card with Aadhaar, please link it before 31 May. This will help you avoid additional tax deduction.’
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Warning for banks, forex dealers too
In another post, the IT department has asked institutions like banks and forex dealers to file the Statement of Financial Transactions (SFT) before May 31. Otherwise, they can be fined. Through SFT, the Income Tax Department keeps an eye on the transactions of large amounts of money of a person.
The reporting entities that are required to file SFT returns with the tax authorities include foreign exchange dealers, banks, sub-registrars, NBFCs, post offices, bond/debenture issuers, mutual fund trustees, companies paying dividends or buying back shares.
Delay in filing SFT returns can attract a penalty of up to Rs 1,000 per day. Non-filing or filing of incorrect details can also attract a separate penalty.
