2024-04-26 03:42:24
Mumbai: If knowingly or unknowingly you have not yet linked PAN with Aadhaar, then there is a chance to do it before May 31. For those who have not done so, the Tax Deduction at Source (TDS) rate will be double the normal. However, now the Income Tax Department has said to provide relief to those taxpayers who will link their PAN with Aadhaar by May 31. The department has said that if Aadhaar is linked to PAN card by May 31, then no action will be taken against taxpayers and businessmen for less deduction of TDS. According to the rules of the Income Tax Department, if the PAN card is not linked with the Aadhaar number, then TDS will be deducted at double the rate. But taxpayers did not pay attention to this. After this, the Central Board of Direct Taxes received many complaints from taxpayers that they did not know that not linking PAN-Aadhaar could cause them so much loss. Many property buyers had to pay 19% TDS from their own pocket. Many businessmen also had to deduct TDS at higher rates.
Appealed when penalty was imposed
Tax expert Ostwal said that the PAN cards of those who had not linked their PAN card with Aadhaar by June 30, 2023, had become inactive. The house rent of those people has also increased and TDS has also doubled to 19-20%. When penalties were imposed on people by the department and notices were issued, a large number of people filed a petition with the government. There have been many incidents where someone bought a property worth more than Rs 50 lakh, but before making the payment to the seller, they did not check the PAN status of the seller and they got an income tax notice. Inoperative PAN increases TDS rates.
Refund not received
Tax consultant Balwant Jain has said that people whose PAN is not linked to Aadhaar are not able to get refund due to many reasons. Along with this, the interest on their tax refund will also continue to reduce.
What are people’s complaints?
Income tax expert Rajesh Vyas said that the Income Tax Department has given a big relief to taxpayers as well as businessmen regarding TDS (TCS) deduction because it was not known who did not have Aadhaar-PAN link. Later notices would come and penalties would be imposed. In fact, people complained that the department did not have any system in place to know whether there was a PAN-Aadhaar link or not. Even the businessmen who used to deduct TDS were facing problems because they did not realize that those who have not got the link done, their TDS has to be deducted at a higher rate. Now the department has said that they will get the utility provided and no action will be taken against those who have received the notice.