I-T Dept Issues Reminder: Link PAN with Aadhaar by May 31 to avoid higher TDS; here’s how

• May 29, 2024
• CA Chandan Agarwal's Office

Taxpayers must link PAN with Aadhaar by May 31, 2024 to avoid higher tax deductions under Sections 206AA and 206CC of the Income Tax Act, 1961. Reminder issued by the Income Tax Department to enforce compliance and streamline tax administration.

The Income Tax Department has issued a reminder for taxpayers to link their Permanent Account Number (PAN) with Aadhaar by May 31, 2024. The reminder, posted on X (formerly Twitter), emphasises the importance of meeting this deadline to avoid higher tax deductions at source (TDS).

Key reminder from the I-T Department

On May 28, 2024, the Income Tax Department used social media to alert taxpayers about the critical deadline. The department’s post highlighted that failure to link PAN with Aadhaar would result in an increased rate of TDS.

“Kind attention taxpayers, please link your PAN with Aadhaar before May 31, 2024… 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 transactions entered into before March 31, 2024,” the post read.

Implications of missing the deadline

Taxpayers who do not comply with the linking requirement by the stipulated date will face significant financial repercussions. Specifically, they will be subject to higher tax deductions and collections as per Sections 206AA and 206CC of the Income Tax Act, 1961. This measure aims to enforce compliance and streamline tax administration.

Previous circular

This reminder follows a previous circular issued on April 23, 2024, by the Central Board of Direct Taxes (CBDT). The circular, identified as CBDT Circular No. 6/2024, detailed the regulations surrounding PAN-Aadhaar linking and outlined the consequences for non-compliance.

How to link PAN with Aadhaar?

1. Visit the official website of the Income Tax Department atincometaxindiaefiling.gov.in.
2. Navigate to the ‘Quick Links’ section and select the ‘Link Aadhaar’ option.
3. Input your PAN and Aadhaar number, then click on the ‘Validate’ button.
4. Provide your name as it appears on your Aadhaar card and your mobile number, then click on the ‘Link Aadhaar’ button.
5. Enter the OTP sent to your mobile number and click the ‘Validate’ button to complete the process.

How to check PAN and Aadhaar linkage status?

1. Go to the official website: https://www.incometax.gov.in/iec/foportal/ and select the ‘Link Aadhaar Status’ option under the ‘Quick Links’ section.
2. Enter your PAN and Aadhaar numbers, then click on the ‘View Link Aadhaar Status’ button.
3. Your PAN and Aadhaar linkage status will appear on the screen after successful validation.
4. If the UIDAI is still processing your request, you will need to check the status again later to confirm the linkage.

Source: https://www.livemint.com/news/india/income-tax-department-issues-reminder-link-pan-with-aadhaar-by-may-31-to-avoid-higher-tds-heres-how-uidai-11716883795253.html