The Income Tax Department on Tuesday said that taxpayers should link their PAN card and Aadhaar by May 31. If you do not do so, you may have to pay more tax. According to the rules of the Income Tax Department, if your Permanent Account Number (PAN) is not linked with biometric Aadhaar, then Tax Deduction at Source (TDS) will be deducted at double the applicable rate.
The Income Tax Department on Tuesday said that taxpayers should link their PAN card and Aadhaar by May 31. If you do not do so, you may have to pay more tax.
How much more tax will be deducted?
According to Income Tax Department rules, if your Permanent Account Number (PAN) is not linked with biometric Aadhaar, then Tax Deduction at Source (TDS) will be deducted at double the applicable rate.
The department had also issued a circular last month. It was said that if those people from whose account less TDS has been deducted, link their PAN and Aadhaar by May 31, then they will not need to pay more TDS. Also, no action will be taken against them.
The Income Tax Department has posted on social media platform X, ‘If you have not linked PAN card with Aadhaar, please get it linked before May 31. With this you can avoid additional tax deduction.
Warning for banks and forex dealers also
In another post, the I-T department has asked institutions like banks and forex dealers to file Statement of Financial Transactions (SFT) before May 31. Otherwise they can be fined. Through SFT, the Income Tax Department keeps an eye on the transactions of large amounts of money of a person.
Reporting entities that are required to file SFT returns with tax authorities include foreign exchange dealers, banks, sub-registrars, NBFCs, post offices, bond/debenture issuers, mutual fund trustees, companies paying dividends or buying back shares. Are included.
Delay in filing SFT return may attract a penalty of up to Rs 1,000 per day. Separate penalty may also be imposed for non-filing or filing wrong details.
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