Avoid TDS Penalty! I-T Dept Reminds Deadline To Link PAN-Aadhaar Approaching! Here's How To Do It

The Income Tax Department on May 28, 2024, reiterated its earlier circular for taxpayers to link their Permanent Account Number (PAN) with Aadhaar by May 31, 2024. The reminder, posted on X plan stresses, that if you fail to meet this by the deadline, higher tax deductions at source (TDS) may be deducted. There are many more fallouts of its earlier circular as follows. "Kind attention taxpayers, please link your PAN with your Aadhaar before May 31, 2024 Linking your PAN with your Aadhaar by May 31 ensures you don’t face higher tax deduction/tax collection under Section 206AA and 206CC of the Income Tax Act, 1961, due to an inoperative PAN for transactions entered into before March 31, 2024," the post read.

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The Income Tax Department had earlier on April 24, 2024, announced that the deadline was extended to May 31, 2024, for imposing penalties on deductees for non-deduction of double TDS. According to the circular issued by the Central Board of Direct Taxes (CBDT), no action will be taken against TDS deductees for short deduction of Tax Deducted at Source (TDS) if their assesses link their PAN with Aadhaar by May 31.

To put things simply, PANs that are not linked with Aadhaar are considered inactive by the IT department, resulting in the responsibility for deductors to do a double tax deduction for transactions requiring tax collection at source. Several deductees had received notices for defaulting on tax payments as they didn't deduct double TDS and they should take it as a priority to ask assessors to get their PAN linked with Aadhaar, experts had pointed out when the April 24 circular came.

If you do not link your PAN to your Aadhar number, your demat account will also be deemed non-KYC compliant, and you will be restricted from trading in securities until the linkage is done. Further, you cannot file income tax returns, pending returns cannot be processed, and TDS will be deducted at double rate.

How to check PAN and Aadhaar linkage status?

• To check the PAN-Aadhar link, go to the income tax department's official website: https://www.incometax.gov.in/iec/foportal/.

• Navigate to the ‘Link Aadhaar Status’ option under the ‘Quick Links’ section.

• Enter your PAN number and Aadhaar number, then select the ‘View Link Aadhaar Status’ option.

• You can view your PAN and Aadhaar linkage status here unless the UIDAI is still processing your request.

How To Link PAN With Aadhaar?

• To link PAN with Aadhaar, all you need is a Valid PAN, Aadhaar Number and a Valid Mobile Number.

• Visit the e-Filing Portal Home page and click on 'Link Aadhaar' in the Quick Links section or log into the e-Filing portal and click on 'Link Aadhaar' in the Profile section.

• Enter your PAN and Aadhaar Number, then choose 'Continue' to Pay Through e-Pay Tax.

• Enter your mobile number to receive OTP and after OTP verification, you will be redirected to the e-Pay Tax page, where you can click on 'Proceed'.

• Then select the relevant Assessment Year and Type of Payment as 'Other Receipts' (500) and click 'Continue'.

• After successful payment, visit the 'Link Aadhaar' page again.

• Once the payment details are verified, click 'continue' to submit the PAN-Aadhaar link request.