Notification No: F.No. 275/4/2024-IT(B)
Notification Date: 5th August 2024
Relevant Act/Rule: Income-tax Act, 1961
Relevant Section/Rule: Section 206AA/206CC
Relevant Authority: CBDT
CBDT had earlier provided a window of opportunity to the taxpayers up to 31.05.2024 for linkage of PAN and Aadhaar for the transactions entered into up to 31.03.2024 so as to avoid higher deduction/collection of tax under section 206AA/206CC of the Income-tax Act, as the case maybe (Ref to Circular no. 06 of 2024 dated 23.04.2024)
CBDT further received several grievances from the taxpayers where they have cited instances of demise of the deductee/collectee during the said period (i.e. on or before 31.05.2024) before the option to link PAN and Aadhaar could have been exercised. In such cases, tax demands are standing against the deductor/collector as a result of failure to link PAN and Aadhaar of the deceased person.
In order to redress such grievances of the taxpayers, the Board specified that in respect of cases where higher rate of TDS/TCS was attracted under section 206AA1206CC of the Act pertaining to the transactions entered into up to 31.03.2024 and in case of demise of the deductee/collectee on or before 31.05.2024 i.e. before the linkage of PAN and Aadhaar could have been done, there shall be no liability on the deductor/collector to deduct/collect the tax under section 206AA/206CC, as the case maybe. The deduction/collection as mandated in other provisions of Chapter XVII-B or Chapter XVII-BB of the Act, shall be applicable.
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