Link your PAN with Aadhaar to avoid higher TDS deductions, check last date issued by I-T

The income tax (I-T) department today, May 28, asked taxpayers to link their PAN with Aadhaar to avoid higher tax deductions.

The last date to do the same is May 31, the I-T department said.

Posting on X, the I-T department wrote, "Please link your PAN with Aadhaar before May 31, 2024, if you haven't already, to avoid tax deduction at a higher rate," the department posted on X.

According to income tax laws, if a Permanent Account Number (PAN) is not linked to a biometric Aadhaar, TDS must be deducted at double the appropriate rate.

Last month, the income tax department issued a circular indicating that no action will be taken for short TDS deduction if the assessee registers his/her PAN with Aadhaar by May 31.

In a separate post, the I-T department asked reporting entities, including banks, and forex dealers, to file SFT by May 31 to avoid penalties.

"The deadline to file SFT (Statement of Specified Financial Transactions) is May 31, 2024. Avoid penalties by filing accurately and on time," the department said.

The reporting entities that are required to file SFT returns with tax authorities include forex dealers, banks, sub-registrar, NBFC, post offices, issuers of bonds/debentures, mutual fund trustees, companies paying dividends or buying back shares.

These specified institutions are required to furnish the details of certain financial transactions or any reportable account registered/recorded/maintained by them during the year.

Delays in filing SFT returns may attract a penalty of up to Rs 1,000 for each day of default. Non-filing or filing inaccurate statements may also lead to a levy of penalties.

Through SFT, the income tax department keeps track of high-value transactions undertaken by an individual.

With agency inputs