New Delhi, May 28 – The Income Tax Department issued a reminder on Tuesday, urging taxpayers to link their Permanent Account Number (PAN) with Aadhaar by May 31 to avoid potential tax deduction at a higher rate. Under income tax regulations, failure to link PAN with biometric Aadhaar results in the deduction of Tax Deducted at Source (TDS) at double the applicable rate.<\/p>\n\n\n\n
Last month, the income tax department issued a circular stating that no penal action would be taken for short deduction of TDS if the taxpayer links their PAN with Aadhaar by the specified deadline.<\/p>\n\n\n\n
In a statement posted online, the department emphasized the importance of linking PAN with Aadhaar before May 31, 2024, to prevent tax deduction at an elevated rate.<\/p>\n\n\n\n
Additionally, the Income Tax Department advised reporting entities, including banks and forex dealers, to file Statement of Specified Financial Transactions (SFT) by May 31 to avoid penalties.<\/p>\n\n\n\n
“The deadline to file SFT is May 31, 2024. Avoid penalties by filing accurately and on time,” the department underscored.<\/p>\n\n\n\n
Reporting entities required to file SFT returns include forex dealers, banks, sub-registrars, Non-Banking Financial Companies (NBFCs), post offices, issuers of bonds\/debentures, mutual fund trustees, and companies involved in dividend payouts or share buybacks.<\/p>\n\n\n\n
These institutions are mandated to furnish details of specific financial transactions or reportable accounts recorded or maintained by them during the fiscal year.<\/p>\n\n\n\n
Delay in filing SFT returns may result in penalties of up to Rs 1,000 for each day of default, while non-filing or inaccurate statements may also lead to penalty imposition.<\/p>\n\n\n\n
Through SFT filings, the Income Tax Department monitors high-value transactions conducted by individuals, ensuring compliance with tax regulations.<\/p>\n","protected":false},"excerpt":{"rendered":"
New Delhi, May 28 – The Income Tax Department issued a reminder on Tuesday, urging taxpayers to link their Permanent Account Number (PAN) with Aadhaar by May 31 to avoid potential tax deduction at a higher rate. Under income tax regulations, failure to link PAN with biometric Aadhaar results in the deduction of Tax Deducted […]<\/p>\n","protected":false},"author":1,"featured_media":2383,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-2382","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-national"},"yoast_head":"\n