Tax Reminder: Link PAN with Aadhaar by May 31 to Avoid Higher TDS- The Income Tax Department has issued a reminder to taxpayers to link their Permanent Account Number (PAN) with Aadhaar by May 31, 2024, to avoid higher tax deductions at source (TDS).

On May 28, 2024, the Income Tax Department used social media to alert taxpayers about the upcoming deadline. They emphasized that failing to link PAN with Aadhaar would lead to increased TDS rates.

"Attention taxpayers, please link your PAN with Aadhaar before May 31, 2024. Linking your PAN with Aadhaar by this date ensures you don’t face higher tax deduction or tax collection under Sections 206AA and 206CC of the Income Tax Act, 1961, due to an inoperative PAN for transactions entered into before March 31, 2024," the department's post read.

Taxpayers who miss the deadline will face significant financial consequences, including higher tax deductions and collections under the provisions of Sections 206AA and 206CC of the Income Tax Act, 1961. These measures are aimed at enforcing compliance and streamlining tax administration.

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

How to Link PAN with Aadhaar:

• Visit the official website of the Income Tax Department at incometaxindiaefiling.gov.in.
• Navigate to the ‘Quick Links’ section and select the ‘Link Aadhaar’ option.
• Enter your PAN and Aadhaar numbers, then click on the ‘Validate’ button.
• Provide your name as it appears on your Aadhaar card and your mobile number, then click on the ‘Link Aadhaar’ button.
• 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:

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

Taxpayers are urged to complete the PAN-Aadhaar linking process at the earliest to avoid any inconvenience. Ensure compliance with the deadline to avoid higher TDS deductions.

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