Income Tax Department Mandates PAN-Aadhaar Linking by May 31st, 2024
GG News Bureau
New Delhi, 1st June. The Income Tax Department has been issuing warnings to taxpayers, emphasizing the importance of linking their Permanent Account Number (PAN) with Aadhaar by May 31st, 2024. Failure to do so will result in higher Tax Deducted at Source (TDS) being deducted from their income.
Higher TDS for Unlinked PAN-Aadhaar:
If PAN is not linked to Aadhaar by the deadline, tax will be deducted at twice the usual rate for transactions entered into before March 31st, 2024.
Relief for Tax Deductors:
Taxpayers who have linked their PAN-Aadhaar by May 31st, even if their PAN was previously inactive, will not face penalties if tax deductors had deducted TDS at a higher rate.
Exemption Categories:
Certain categories of taxpayers are exempt from linking PAN-Aadhaar. For specific details, taxpayers can refer to the guidelines provided by the Income Tax Department.
Consequences of Not Linking PAN-Aadhaar:
Failure to link PAN with Aadhaar can lead to various issues, including:
- Inability to receive tax refunds.
- Loss of interest on tax refunds.
- Difficulty in conducting financial transactions.
The Income Tax Department has instructed banks and other reporting entities to file the Statement of Specified Financial Transactions (SFT) by May 31st. This statement assists tax authorities in monitoring significant financial transactions.
How to Pay Late Fees for PAN-Aadhaar Linking:
Taxpayers can follow these steps to pay late fees for PAN-Aadhaar linking:
- Visit the official Income Tax e-filing website.
- Locate the PAN-Aadhaar linking section and select Challan No. ITNS 280.
- Choose the appropriate tax head and provide necessary details, including PAN, address, and assessment year.
- Make the payment and obtain a receipt.
- Once the payment is processed, proceed with linking PAN-Aadhaar to avoid penalties.
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