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TDS @20 for not linking Aadhar

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Mohan Kale

260 Points Posted on 08 November 2023

Deductee had not linked Aadhar with PAN due to which default has been generated for short deduction. Post generation of default, the deductee linked his Aadhar with PAN.
Query is, whether the deductor still needs to pay for the difference of 18% along with interest or what action needs to be taken?

Replies (3)

Quick Summary

A deductee failed to link their Aadhaar with PAN, resulting in a default for short TDS deduction. Although the Aadhaar was linked afterwards, the query is whether the deductor must still pay the 18% difference and interest. The consensus suggests that a TDS correction statement for Form 26Q or 24Q can be submitted once the Aadhaar is linked, and the demand may not need to be paid.

M Sajeesh

35 Points Posted on 08 November 2023

You have deducted tax, Example : 31 July 2003 Tds deducted. If Aadhaar PAN card link is done on 1st of August then PAN card will be as "INOPERATIVE" while filing TDS RETURN. So you have to cut 20% tax.