Central Board of Direct Taxes on 5th August, 2024 has issued clarification regarding the opportunity provided to the taxpayers upto 31 .05.2024 for linkage of PAN and Aadhaar for the transactions entered into upto 31.03.2024 so as to avoid higher deduction/collection of tax under section 206AA1206CC of the Income-tax Act, as the case maybe.
Several grievances have been received from the taxpayers where they have cited instances of demise of the deductee/collectee during the said period (i.e. on or before 31.05.2024) before the option to link PAN and Aadhaar could have been exercised. In such cases, tax demands are standing against the deductor/collector as a result of failure to link PAN and Aadhaar of the deceased person.
In order to redress such grievances of the taxpayers, the Board, hereby specifies that in respect of cases where higher rate of TDSITCS was attracted under section 206AA1206CC of the Act pertaining to the transactions entered into up to 31.03.2024 and in case of demise of the deductee/collectee on or before 31.05.2024 i.e. before the linkage of PAN and Aadhaar could have been done, there shall be no liability on the deductor/collector to deducVcoliect the tax under section 206AA1206CC, as the case maybe.
