New Delhi: The Income Tax Department issued a reminder to taxpayers, urging them to link their Permanent Account Number (PAN) with Aadhaar by May 31, 2024 or face higher tax deduction at source.
The I-T department has issued a reminder via its official handle on X, urging taxpayers to link their PAN with Aadhaar by May 31st, 2024, to avoid higher tax deductions. Not linking PAN with Aadhaar could have significant implications on income tax return (ITR) filings, considering the ITR filing deadline is July 31, 2024.
The Central Board of Direct Taxes (CBDT) emphasized the necessity of linking PAN with Aadhaar in a circular (CBDT Circular No. 6/2024) released on April 23, 2024. The circular detailed the rules and potential repercussions of failing to link PAN with Aadhaar.
The April circular also addressed the challenges faced by deductors/collectors who had deducted TDS/TCS at standard rates but were mandated to deduct/collect at twice the rate due to the deductee’s PAN being inoperative since April 1, 2023.
As per Section 139AA of the Income Tax Act, every individual assigned a PAN as of July 1, 2017, and eligible to obtain an Aadhaar number, is required to link the two in the prescribed manner. Failure to do so by June 30, 2023, will render the PAN inoperative. However, this does not apply to individuals in the exempted category.
