Income tax department: The Income Tax Department has given big relief to taxpayers and businessmen regarding TDS (TCS) deduction. The Income Tax Department has said that no action will be taken against taxpayers and traders for short deduction of TDS if they link PAN with Aadhaar by May 31, 2024.
According to the rules of the Income Tax Department, if the PAN number is not linked to Aadhaar, there is a provision for TDS deduction at double the rate. But the Central Board of Direct Taxes said it has received several complaints from taxpayers that they have received notices stating that they have under-deducted or collected TDS/TCS while making such transactions. Regarding lapses where PAN was inactive.
In such cases, deduction at the higher rate has not been made, hence the Income Tax Department demands tax on processing the TDS/TCS details. To address such complaints, CBDT has said that for transactions made till March 31, 2024 and in cases where PAN is activated due to PAN Aadhaar linking before May 31, 2024, taxpayers will be charged a higher rate in such cases. Tax will not be taken. have to give.
Sandip Sehgal, partner tax, AKM Global, said the circular has brought some relief to tax deductors whose PAN had become inoperative due to it not being linked to Aadhaar. He said that in such cases, taxpayers should link PAN with Aadhaar as soon as possible. TDS is deducted on various sources of income. Which includes salary, investment, bank FD, commission. The government gets tax only through TDS. The responsibility of depositing TDS into the government account rests with the person or company making the payment.
