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The Income Tax Department has been warning taxpayers, urging them to link their Permanent Account Number (PAN) with Aadhaar by May 31st, 2024. Failing to do so will result in a higher Tax Deducted at Source (TDS) being deducted from their income.
Higher TDS For Unlinked PAN-Aadhaar: If your PAN is not linked to Aadhaar by the deadline, tax will be deducted at twice the usual rate for transactions entered into before March 31st, 2024.
Relief for Tax Deductors: If a taxpayer has linked their PAN-Aadhaar by May 31st, even if their PAN was inactive earlier, the tax deductor who deducted TDS at a higher rate won't be penalised.
Exemption Categories: Certain categories of taxpayers are exempt from linking PAN-Aadhaar. You can refer to the Income Tax Department for details.
Consequences of Not Linking PAN-Aadhaar: An inoperative PAN due to non-linking with Aadhaar can lead to several issues:
- Inability to receive tax refunds.
- Loss of interest on tax refunds.
- Difficulty in carrying out financial transactions.
- Statement of Specified Financial Transactions (SFT) Filing:
The Income Tax Department has also directed banks and other reporting entities to file the Statement of Specified Financial Transactions (SFT) by May 31st. This statement helps tax authorities monitor significant financial transactions.
How to Pay Late Fees for PAN-Aadhaar Linking:
- Visit the official Income Tax e-filing website.
- Locate the PAN-Aadhaar linking section and select Challan No. ITNS 280.
- Choose the appropriate tax head and fill in the required details, including PAN, address, and assessment year.
- Make the payment and obtain a receipt.
- Once the payment is processed, you can proceed with linking your PAN-Aadhaar.
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