Income Tax Department issued a notice regarding deduction of TDS at higher rate if Bank KYC is incomplete without this document.
On May 28, 2024, the Income Tax Department used social media to alert taxpayers about the critical deadline. The department's post highlighted that failure to link PAN with Aadhaar would result in an increased rate of TDS.
Taxpayers who do not comply with the linking requirement by the stipulated date will face significant financial repercussions. Specifically, they will be subject to higher tax deductions and collections as per Sections 206AA and 206CC of the Income Tax Act, 1961
This reminder follows a previous circular issued on April 23, 2024, by the Central Board of Direct Taxes (CBDT). The circular, identified as CBDT Circular No. 6/2024, detailed the regulations surrounding PAN-Aadhaar linking and outlined the consequences for non-compliance
Taxpayers must link PAN with Aadhaar by May 31, 2024 to avoid higher tax deductions under Sections 206AA and 206CC of the Income Tax Act, 1961. Reminder issued by the Income Tax Department to enforce compliance and streamline tax administration.