Link PAN With Aadhaar By May 31 To Avoid THIS Reduction; Here’s How To Link PAN With Aadhaar | Personal Finance News

According to income tax rules, if a Permanent Account Number (PAN) is not linked with a biometric Aadhaar, TDS is required to be deducted at double the applicable rate. To recall, the tax department issued a circular last month stating that no action will be taken for a short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31. 

Kind Attention Taxpayers,

Please link your PAN with Aadhaar before May 31st, 2024, if you haven’t already, in order to avoid tax deduction at a higher rate.

Please refer to CBDT Circular No.6/2024 dtd 23rd April, 2024. pic.twitter.com/L4UfP436aI
— Income Tax India (@IncomeTaxIndia) May 28, 2024

The tax department also posted on X (formerly Twitter), highlighting the importance of meeting the deadline to avoid higher tax deductions at source (TDS). The statement reads “Kind attention taxpayers, please link your PAN with 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,” said the-T Department. 

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.

Kind Attention Reporting Entities!

The deadline to file SFT (Statement of Specified Financial Transactions) is May 31st, 2024.

Avoid penalties by filing accurately and on time. pic.twitter.com/PmVbio6ZRt
— Income Tax India (@IncomeTaxIndia) May 28, 2024

The reporting entities which 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. Delay in filing of 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 a penalty.

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

Here’s How To Link PAN With Aadhaar Card 

Step 1: 

To link PAN and Aadhaar cards, taxpayers have to first register on the Income tax e-filing portal

Step 2: 

Log in to the e-Filing portal of the Income Tax Department by entering the log-in ID, password and date of birth

Step 3:

After punching in the details, you will also have to feed in a code

Step 4:

On logging in to the site, a pop up window will appear, prompting you to link your PAN card with your Aadhaar card. 

Step 5: 

If not, you can go to the Profile setting and opt for the “Link Aadhaar” button. 

Step 6:

Punch in the details such as name, date of birth and gender. It will be already mentioned by you during registration on the e-filing portal.

Step 7:

Verify the details on the screen with the ones mentioned on your Aadhaar card

Step 8:

If the details match, enter your Aadhaar card number and click on the “link now” button

Step 9:

You will get the message that your Aadhaar card has been successfully linked to your PAN card. (With inputs From PTI)