Quick Summary
In a welcome move aimed at addressing taxpayer grievances, the Central Board of Direct Taxes (CBDT) has issued a clarification providing significant relief to deductors and collectors facing demands for short-deduction or short-collection of tax due to inoperative PANs. Earlier, through Circular No
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member? Login here for an ad-free experience.
FAQ :
The CBDT has relaxed the Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) norms for taxpayers whose PANs were inoperative because they weren't linked with Aadhaar.
This clarification provides relief to deductors and collectors who were facing demands for short-deduction or short-collection of tax due to the PANs of the deductees/collectees being inoperative.
Previously, PANs not linked with Aadhaar by July 1, 2023, became inoperative, leading to higher TDS/TCS rates. This caused issues for deductors/collectors who then faced demands for not applying these higher rates.
Relief is provided if the PAN is made operative by September 30, 2025, for amounts paid or credited between April 1, 2024, and July 31, 2025. For amounts paid or credited from August 1, 2025, relief is granted if the PAN becomes operative within two months of the payment/credit month.
Yes, in the cases where relief from higher TDS/TCS rates is granted, the standard deduction/collection as mandated by other provisions of the Income-tax Act will still apply.
CAclubindia
