New Delhi: The Income Tax (I-T) department has notified the cutoff date for linking your PAN Card with Aadhaar to avoid extra tax deduction during the ongoing assessment year, according to an official post on social media platform X. “Please link PAN with Aadhaar before May 31st, 2024, if you haven’t already,” the I-T department said.
The tax department added that linking PAN with Aadhaar by May 31 will ensure that the taxpayer does not face higher tax deduction under Section 206AA and 206CC of the Income Tax Act, 1961. Under these sections, the extra tax is deducted for having an inoperative PAN for transactions that were registered prior to March 31, 2024.
What happens if you miss PAN-Aadhaar linking deadline?
In its circular number 6/2024, the I-T department stated that people who fail to intimate Aadhar under section 139AAA read with 114AAA of the I-T Act, shall face the following consequences:
Their due tax refund or part of it shall not be made
They will lose out on interest payable on refund starting from date specified under Section 114AAA until the date on which the PAN becomes operative
Tax deductible under Chapter XVII-B shall be deducted at a higher rate under provisions of section 206AA of the I-T Act
The tax collectible at source under Chapter XVII-B will be deducted at a higher rate
The Income Tax department had earlier provided relief to taxpayers by allowing them to link PAN with Aadhaar by May 31, 2024. Compliance with this deadline will result in zero liability under section 206AA/206CC and Chapter XVII-B and -BB.
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
What are sections 206AA and 206CC of the I-T Act?
Under section 206AA of the Income Tax Act, the taxpayer must share their PAN with their employer.
Section 206CC requires taxpayers to furnish their PAN to such a person who is a buyer/seller and who is responsible for collecting tax at source (TCS)
PAN-Aadhaar linking: The Income Tax department has warned taxpayers to link their PAn with Aadhaar by My 31, 2024 to avoid higher tax deduction on transactions reported up to March 31, 2024. Failing to link PAN with aadhaar will result in higher tax deduction at source and tax collection at source for eligible transactions. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
