Link PAN with Aadhaar by May 31 to avoid higher TDS deduction

If you haven't connected your PAN card and aadhar card yet, do so by May 31. Otherwise, you would have a larger rate of tax deduction. According to income tax laws, if a Permanent Account Number (PAN) is not linked to a biometric Aadhaar, TDS must be deducted at double the appropriate rate.

Last month, the income tax department issued a circular indicating that no action will be taken for short TDS deduction if the assessee registers 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 stated on X.
In a second post, the I-T department requested that reporting businesses, including banks and currency dealers, file SFT by May 31 to avoid fines.
"The deadline for filing SFT (Statement of Specified Financial Transactions) is May 31, 2024. "Avoid penalties by filing accurately and on time," the government stated.

Forex dealers, banks, sub-registrars, NBFCs, post offices, bond/debenture issuers, mutual fund trustees, and companies that pay dividends or purchase back shares are all obliged to file SFT filings with the tax authorities.
These designated institutions are expected to provide information on certain financial transactions or any reportable accounts registered/recorded/maintained by them throughout the year.
Delay in filing SFT returns may result in a penalty of up to Rs 1,000 per day of failure. Failure to file or filing an erroneous statement may result in a penalty.
The income tax agency uses SFT to keep track of high-value transactions made by individuals.

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