In a latest development, the Central Board of Direct Taxes (CBDT) had announced a big relief in the provisions related to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). The new regulation outlined by the department provides a relaxation to taxpayers who have faced the unfortunate event of the death of the deductee or collectee before linking their PAN (Permanent Account Number) with Aadhaar.
In a recent post shared on the social media platform X, formerly Twitter, the Income Tax Department said, “CBDT relaxes TDS/TCS provisions under the Income-tax Act, 1961, in the event of death of deductee/collectee before linking of PAN and Aadhaar. Circular No. 8 of 2024 issued on 05.08.2024. Aimed to address genuine difficulties faced by taxpayers.”
CBDT relaxes TDS/TCS provisions under the Income-tax Act, 1961, in the event of death of deductee/collectee before linking of PAN and Aadhaar.
Circular No. 8 of 2024 issued on 05.08.2024.
Aimed to address genuine difficulties faced by taxpayers.
The Circular is available… pic.twitter.com/5LLVYUdjYn
— Income Tax India (@IncomeTaxIndia) August 7, 2024
What Does the Circular Say?
The latest circular by CBDT address the challenges faced by taxpayers whose PAN-Aadhaar linkage was pending at the time of the deductee’s or collectee’s death.
For transactions carried out up to March 31, 2024, if the individual passed away on or before May 31, 2024 ,as per the latest circular states that deductors and collectors will not be held liable for the higher tax rates under sections 206AA and 206CC of the Income-tax Act, 1961.
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Prior to this, Circular No. 6 of 2024, was issued on April 23, 2024, which had extended the deadline for linking PAN with Aadhaar to May 31, 2024.
However, the latest development goes a step further ahead to address the issue of deceased individuals, ensuring that the tax burden does not unfairly increase due to the inability to link PAN and Aadhaar before their death.
