No Action for Short Deduction of TDS, If PAN Linked With Aadhaar by May 31

The income tax department has said that no action will be taken for short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31. To redress the grievances faced by such deductors/collectors, the CBDT specified that for “the transactions entered into up to March 31, 2024 and in cases where the PAN becomes operative on or before May 31, 2024, there shall be no liability on the deductor/collector to deduct/collect the tax ”. AKM Global, Partner- Tax, Sandeep Sehgal said the circular gives some relief to tax deductors concerning cases where the PAN of deductees is found to be inoperative due to non-linkage with Aadhaar. Sehgal said in cases where notices have been received for short deduction due to this issue, it is advisable to promptly ensure PAN linkage with Aadhaar by reaching out to the deductee, ideally before May 31, 2024.