TaX News: Aadhaar-PAN linking update
Linking your Aadhaar number with your PAN (Permanent Account Number) is a mandatory requirement in India, as per directives from the Government of India. Linking Aadhaar with PAN helps prevent individuals from holding multiple PANs, thus reducing tax evasion. This linkage also helps in the verification process of income tax filings.
Important Points to Note
- Ensure that your PAN and Aadhaar details, such as name, date of birth, and gender, match exactly to avoid any discrepancies.
- If there are any mismatches, you may need to update your details either in your PAN or Aadhaar database before proceeding with the linking.
- Failure to link Aadhaar with PAN may result in your PAN being declared invalid.
Due Date
The Income Tax Department has urged taxpayers to link PAN with Aadhaar by May 31, 2024, to avoid higher tax deducted at source (TDS) or tax collected at source (TCS).
Linking your PAN with your Aadhaar
“Linking your PAN with your Aadhaar by May 31 ensures you don’t face higher tax deduction/ tax collection under Section 206AA and 206CC of the Income Tax Act, 1961, due to an inoperative PAN for the transactions entered into before March 31, 2024,” it added.
the deductees (whose tax has been deducted) need to link their PAN and Aadhaar by May 31, 2024, so the deductor (who has deducted the tax) is not liable to pay a penalty for not deducting higher TDS.
- Sources: News / Updates
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
