MAJOR RELIEF FOR TAXPAYERS: TDS DEMANDS WAIVED DUE TO PAN-AADHAAR NON-LINKAGE
The Centralized Processing Cell (TDS) has reprocessed TDS returns for the financial year 2023-24, providing a significant reprieve for taxpayers. This reprocessing has effectively removed short deduction demands resulting from higher TDS/TCS rates due to PAN non-linkage with Aadhaar, in line with a recent Circular.
In an effort to assist taxpayers facing higher TDS/TCS rates due to non-linkage of PAN with Aadhaar, a circular was issued offering relief for transactions up to March 31, 2024. Taxpayers were eligible for this waiver if their PAN was linked with Aadhaar before May 31, 2024. This move aimed to alleviate the unnecessary burden on taxpayers and streamline the compliance procedure.
The prompt action taken by the CPC (TDS) has led to the reworking of concerned TDS returns for the fiscal year 2023-24, resulting in the reduction of short deduction demands caused by higher TDS/TCS rates imposed on non-linked PANs.
It is ensured that the reprocessing and removal of demands will be completed in the first week of June 2024. This proactive measure has provided much-needed relief to taxpayers who have faced irregularities in their TDS returns due to the PAN-Aadhaar linking issue.
It is advisable for tax experts and taxpayers to review the reprocessed TDS returns to ensure that the short deduction demands have been resolved, aligning with the Circular’s relaxation requirements.
Steps to Verify Updated TDS Returns:
- Log in to the TRACES Portal: Access the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal using your credentials.
- Access the TDS Statement: Navigate to the relevant TDS statement for FY 2023-24.
- Check for Updates: Review the statement to confirm the removal of short deduction demands.
- Cross-verify with Circular 6/2024: Ensure that the adjustments align with the provisions of Circular 6/2024.
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