PAN,
Aadhaar
Card not linked? The
income tax department
has provided relief to those dealing with
taxpayers
who failed to link their
PAN
and Aadhaar by the June 30, 2023 deadline. The department has relaxed the deadline for imposing penalties on such cases.
Individuals whose PAN became inoperative due to non-linkage faced higher tax deduction at source (TDS) or tax collection at source rates.
For example, the
TDS
on house rent allowance or HRA for individuals with inoperative PANs increased to 20%.
Many deductors or collectors were unaware of the inoperative status of PANs and continued to deduct or collect tax at the lower rate, resulting in penalties from the income tax department.
According to a TOI report, following numerous petitions from affected parties, the government has now relaxed the rule. Deductors or collectors are now exempt from any liability for transactions that occurred up to last March, provided the PAN becomes inoperative before the end of May.
Kuldip Kumar, partner at Mainstay Tax Advisors, was quoted as saying, "This is a big relief to several of those who were required to withhold or collect tax at a higher rate... It is in the interest of the taxpayers to promptly link their PAN with Aadhaar (if not done so far), as they will not get any refund due to them and also continue to lose interest on their tax refunds until such linkage happens."
English (US) ·