New Delhi: The Central Board of Direct Taxes (CBDT) recently eased TDS and TCS rules for deceased taxpayers. This applies where either the tax deductee or collectee without linking their PAN and Aadhaar. In such cases, higher tax rates will apply to the taxed individual in a move that will reduce the additional tax burden. The information was shared in a CBDT circular dated August 5, 2024, after the department received numerous taxpayer complaints.
Why taxpayers were angry
Since the CBDT had set a May 31, 2024, deadline for PAN-Aadhaar linking, taxpayers moved the department stating that it was unfair to deduct higher tax for failure to link PAN-Aadhaar in cases where the taxpayer died before the stated deadline. The next of kin of these taxpayers sought relief in this respect.
CBDT relaxes TDS/TCS provisions under the Income-tax Act, 1961, in the event of death of deductee/collectee before linking of PAN and Aadhaar.
Circular No. 8 of 2024 issued on 05.08.2024.
Aimed to address genuine difficulties faced by taxpayers.
The Circular is available… pic.twitter.com/5LLVYUdjYn
— Income Tax India (@IncomeTaxIndia) August 7, 2024
What happens when PAN-Aadhaar of deceased taxpayer are not linked
If the PAN of the tax deductee, the person whose tax has been deducted, is not linked with Aadhaar, then they are charged a higher tax. Whereas this can be avoided by PAN-Aadhaar linking.
The CBDT had already extended the deadline for PAN-Aadhaar linking to May 31, 2024, from March 31, 2024. PAN-Aadhaar linking was made mandatory to ensure that individuals do not have more than one PAN. The penalty for failing to meet the deadline was that the taxpayer will have to pay higher TDS or TCS.
ITR AY2024-25 trends
The I-T department in an update shared that over 728 crore ITRS had been filed until July 31, 2024, up 7.5 per cent from 6.77 crore a year ago. A majority of taxpayers (72 per cent) chose to file their ITRs under the new tax regime, according to CBDT.
ITR Filing 2024: The Central Board of Direct Taxes has changes the TCS and TDS rules for taxpayers who passed away before linking their PAN with Aadhaar. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
