Quick Summary
The Central Board of Direct Taxes (CBDT) has issued a crucial circular (No. 08/2024 dated August 05, 2024) providing clarity on the non-applicability of higher rates of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) under sections 206AA and 206CC of the Income-tax Act, 1961, in the unfortunate event of the death of a deductee or collectee before the linkage of their Permanent Account Number (PAN) with Aadhaar. As per Circular no. 06 of 2024 dated 23.04.2024, the Board had provid
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FAQ :
The CBDT is clarifying that higher TDS/TCS rates under sections 206AA and 206CC will not apply if the deductee or collectee died before linking their PAN with Aadhaar.
This clarification covers transactions entered into up to 31 March 2024.
The deadline for linking PAN and Aadhaar for transactions up to 31 March 2024 was initially 31 May 2024.
If the deductee or collectee died on or before 31 May 2024, before their PAN and Aadhaar could be linked, the deductor or collector will not be liable for the higher TDS/TCS rates under sections 206AA/206CC.
No, the standard deduction or collection as mandated by other provisions of Chapter XVII-B or Chapter XVII-BB of the Income-tax Act will still be applicable.
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