Tax deducted at source (TDS): While it is important to deduct a correct amount of TDS in certain transactions, it is also important to check the status of the deductee s PAN. If the TDS deductor does not check the status of PAN of the deductee on the date of TDS deduction then all the penalty and other legal repercussions would be applied to him and nobody else.
In response to a Right to Information (RTI) request, the Central Board of Direct Taxes (CBDT) revealed that 11.5 crore PAN cards were deactivated since they weren t connected to Aadhaar cards by the deadline.
The Aadhaar and PAN linking deadline is approaching. The government this time is serious about the deadline and wants every tax payer in the country to link their two identity proofs before March 31.