Business News | Provisions of TDS/TCS in Case of Death of Deductee or Collectee Relaxed
Get latest articles and stories on Business at LatestLY. The government has relaxed provisions of TDS/TCS in the event of death of deductee/collectee before the linkage of PAN and Aadhaar card.
New Delhi [India], August 7 (ANI): The government has relaxed provisions of TDS/TCS in the event of death of deductee/collectee before the linkage of PAN and Aadhaar card.
TDS is Tax Deducted at Source and TCS is Tax Collected at Source in India.
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The Central Board of Direct Taxes (CBDT), has issued a circular dated August 5, in view of genuine difficulties being faced by taxpayers.
Through the circular, the government said it has relaxed the provisions of TDS/TCS as per the Income-tax Act, in the event of death of deductee/collectee before linking of PAN and Aadhaar.
In order to redress the grievances of the taxpayers wherein instances have been cited, of demise of the deductee/collectee on or before May 31, 2024 and before the option to link PAN and Aadhaar could have been exercised, the circular provides that there shall be no liability on the deductor/collector to deduct/collect the tax under the relevant section of income tax act, pertaining to the transactions entered into upto March 31, 2024.
On April 23, 2024, CBDT extended date for linking of PAN and Aadhaar May for the taxpayers (for the transactions entered into upto March 2024) to avoid higher TDS/ TCS as per the income tax act.
Under the provisions of the Income-tax Act, 1961, every person who has been allotted a PAN as on July 1, 2017 and is eligible to obtain Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority, on payment of a prescribed fee. Failure to do so shall attract certain repercussions under the income tax act.
As per government, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative and the consequences during the period that PAN remains inoperative will be as follows: no refund shall be made against such PANs; interest shall not be payable on such refund for the period during which PAN remains inoperative; and TDS and TCS shall be deducted /collected at higher rate, as provided in the income tax act. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)