India Business News: Individuals whose PAN became inoperative due to non-linkage faced higher tax deduction at source (TDS) or tax collection at source rates. For example,
Providing relief to those taxpayers who failed to link their PAN and Aadhaar by the June 30, 2023 deadline, the Tax Department has relaxed the deadline for imposing penalties and no action will be taken for a short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31
Income tax department has said no action will be taken for a short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31; Know how to link your PAN with Aadhaar
As per CBDT, transactions entered into up to March 31, 2024, and in cases where the PAN becomes operative by May 31, no liability to deduct or collect tax at a higher rate.