Press Release Dated 7 August 2024: CBDT relaxes provisions of TDS/TCS in the event of death of deductee/collectee before linkage of PAN and Aadhaar
In a recent update, the Central Board of Direct Taxes (CBDT) has issued Circular No. 8 of 2024, dated August 5, 2024, providing much-needed TDS/TCS relief to taxpayers facing genuine difficulties. The government has relaxed TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) provisions under the Income-tax Act, 1961, in cases where the deductee or collectee has passed away before linking their PAN (Permanent Account Number) and Aadhaar.
Addressing taxpayers’ grievances, the CBDT acknowledged instances where the demise of the deductee or collectee occurred on or before May 31, 2024, preventing them from linking their PAN and Aadhaar. In such cases, the new circular stipulates that there will be no liability for the deductor or collector to deduct or collect tax under Section 206AA/206CC of the Act for transactions entered into up to March 31, 2024.
This announcement follows Circular No. 6 of 2024, dated April 23, 2024, which extended the deadline for linking PAN and Aadhaar to May 31, 2024, for transactions conducted up to March 31, 2024. This extension aimed to help taxpayers avoid higher TDS/TCS rates as per the Act.
With this relaxation, the CBDT aims to alleviate the difficulties faced by taxpayers due to the unforeseen circumstances of the death of the deductee or collectee before they could link their PAN and Aadhaar. This move ensures that no additional burden is placed on the deductor or collector in such unfortunate events.
Stay informed with the latest updates and ensure compliance with the relaxed provisions to avoid any unnecessary tax liabilities.
To Access the Circular No. 06 of 2024 dated 23.04.2024 CLICK HERE
To Access the Circular No. 08 of 2024 dated 05.08.2024 CLICK HERE
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