IT dept to taxpayers ‘Link PAN to Aadhaar by May 31 or double TDS’

The income tax department on Tuesday asked taxpayers to link their PAN with their Aadhaar by May 31 to avoid tax deductions at a higher rate.

As per income tax rules, if a Permanent Account Number (PAN) is not linked with a biometric Aadhaar, TDS is required to be deducted at double the applicable rate.

Last month, the income tax department issued a circular stating that no action will be taken for short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31.

Please link your PAN with Aadhaar before May 31, 2024, if you haven’t already, in order to avoid tax deduction at a higher rate,” the department posted on X.