CBDT issues Circular to provide relief in case of TDS demands on account of Non Linkage of PAN – Aadhar.
Demands were raised at the time of processing of TDS/TCS statement in cases where pan of deductee or collectee was inoperative on account of non linking with Aadhar and deductor/collector failed to deduct/collect at higher rates as specified u/s 206AA/206CC read with Rule 114AAA.
Now the CBDT circular says that higher rate of TDS/TCS shall not be applicable in following cases
Where the amount is paid or credited from 01.04.2024 to 31.07.2025 and the PAN is made operative (as a result of linkage with Aadhaar) on or before 30.09.2025.
Where the amount is paid or credited on or after 01.08.2025 and the PAN is made operative (as a result of linkage with Aadhaar) within two months from the end of the month in which the amount is paid or credited.
The copy of the order is as under:
