The Income Tax Department has announced that taxpayers who link their PAN with Aadhaar by May 31 will not face action for short deduction in TDS. Short deduction occurs when the deducted tax amount is less than required. CBDT’s circular addresses grievances from deductors receiving notices for short deduction due to inoperative PANs. Relief is provided if transactions occurred until March 31, 2024, and PANs become operative by May 31, 2024, after Aadhaar linkage. Tax experts advise prompt PAN-Aadhaar linking to avoid penalties and elevated TDS rates.
Income Tax Department Offers Relief for PAN-Aadhaar Linking Deadline
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