New Delhi: Central Board of Direct Taxes (CBDT) announced relief for deceased deductees: No higher TDS/TCS rates for those who passed away before PAN-Aadhaar linking deadline.
On the recent news, linkage of PAN with Aadhaar, in the real sense, for those persons who have since passed on, some new guidelines from the Central Board of Direct Taxes were added. As part of the circular, no taxpayer is to suffer higher rates of TDS or TCS if the deductee or collectee is deceased by the linkage deadline on May 31, 2024.
The decision has been taken in view of numerous complaints received from taxpayers pertaining to such linking difficulty where the deductee or collectee demised prior to the deadline. The CBDT has appreciated the fact that these cases were causing huge problems because the PAN of the deceased could not be linked with the Aadhaar and the tax-related issues could not be closed.
As per the existing provisions, in case PAN is not linked with Aadhaar numbers, higher rate of 20% TDS and a higher rate of 5% TCS is chargeable u/s 206AA and 206CC of Income Tax Act respectively. The CBDT, however, has said the higher rates shall not have to be applied in such cases if the deductee or the collectee had died on or before May 31, 2024, and therefore were not able to link their PAN with Aadhaar.
The circular clarifies that all these transactions that are to be finalized until March 31, 2024, which earlier used to bear a higher rate of TDS/TCS, would not create any further liability for the deductor or collector in case the party in question had already expired before the linkage date. The adjustment would reduce the tax burden on the estates and make the life of taxpayers in such an unfortunate case easier.
For those who still have to complete the linking of their PAN to Aadhaar, the process is pretty simple. Log on to the Income Tax e-filing website and go to the link ‘Link Aadhaar’; fill details to link your PAN with your Aadhaar number. Do make sure to pay a fine of Rs 1,000, if applicable, in this regard and complete it by validating OTP sent on your registered mobile number.
This step highlights the CBDT’s commitment to solving taxpayers’ problems without causing harassment in the most complex situations, where the deceased is involved and the tax matters are pending.
The CBDT has announced that higher TDS and TCS rates will not apply if the deducted or collected passes away before the PAN-Aadhaar linking deadline of May 31, 2024. This move addresses taxpayer concerns over difficulties linking PAN and Aadhaar due to the demise of individuals Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
