Provisions of TDS, TCS in case of death of deductee or collectee relaxed

By :  M Srinivas
Update: 2024-08-07 11:05 GMT
The Central Board of Direct Taxes (CBDT) has relaxed provisions of TDS and TCS in event of death of deductee and collectee, before linkage of PAN and Aadhaar. (Photo: File Photo)

New Delhi: The Central Board of Direct Taxes (CBDT) has relaxed provisions of TDS and TCS in event of death of deductee and collectee, before linkage of PAN and Aadhaar.

In view of genuine difficulties being faced by taxpayers, the CBDT issued a circular dated August 5, 2024, and vide the same the government has relaxed the provisions of TDS, TCS as per the Income-tax Act, 1961(the ‘Act’) in the event of death of deductee, collectee before linking of PAN and Aadhaar, according to a statement.

In order to redress the grievances of the taxpayers wherein instances have been cited, of demise of the deductee or collectee on or before May 31, 2024 and before the option to link PAN and Aadhaar could have been exercised, the circular provides that there shall be no liability on the deductor/collector to deduct/collect the tax under section 206AA/206CC of the Act, as the case maybe pertaining to the transactions entered into upto March 31, 2024.

This is in continuation of circular dated April 23, 2024 issued earlier by CBDT wherein the date for linking of PAN and Aadhaar was extended upto May 31, 2024 for the taxpayers (for the transactions entered into upto 31.03.2024) to avoid higher TDS/ TCS as per the Act.


Tags:    

Similar News