Aadhaar-PAN link: I-T Department has issued a detailed to avoid higher TDS. Details Here

PAN-Aadhaar Link: If you haven’t linked your Aadhaar card to PAN card until now, then this information is beneficial for you. The Income Tax Department has suggested taxpayers to hyperlink PAN to Aadhaar by May 31 to avoid tax deduction at a higher charge.

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According to the Income Tax guidelines, if the Permanent Account Number (PAN) isn’t linked to the biometric Aadhaar, then TDS is required to be deducted at twice the relevant charge.

What is the element

The Income Tax Department had issued a round final month stating that no motion could be taken if the assessee linked his PAN with Aadhaar by the due date of May 31. The division wrote on the social media platform ‘X’ on Tuesday, “Please hyperlink your PAN with Aadhaar earlier than 31 May 2024 to avoid tax deduction at higher charge, when you have not finished it already.

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In a separate publish, the IT division additionally requested reporting entities together with banks, overseas alternate sellers to file SFT by May 31 to avoid penalty. The division mentioned, “The final date for submitting SFT (Statement of Specified Financial Transactions) is May 31, 2024. Avoid penalty by submitting accurately and on time.”

Fine up to Rs 1,000

Reporting entities Foreign alternate sellers, banks, sub-registrars, NBFCs, publish workplaces, bond/debenture issuers, mutual fund trustees, corporations paying dividends or shopping for again shares are required to file SFT returns with the tax authorities. Delay in submitting SFT returns attracts a penalty of up to Rs 1,000 for every ‘default’ day. Penalties can be levied for not submitting SFT or submitting incorrect particulars. The earnings tax division retains a watch on excessive worth transactions made by a person by means of SFT.

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