Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 7th August, 2024
Press Release
CBDT relaxes provisions of TDS/TCS in the event of death of deductee/collectee before linkage of PAN and Aadhaar
The Central Board of Direct Taxes (CBDT), has issued Circular no. 8 of 2024 dated 05.08.2024, in view of genuine difficulties being faced by taxpayers. Vide the same, the Government has relaxed the provisions of TDS/TCS as per the Incometax Act, 1961(the ‘Act’) in the event of death of deductee/collectee before linking of PAN and Aadhaar.
In order to redress the grievances of the taxpayers wherein instances have been cited, of demise of the deductee/collectee on or before 31.05.2024 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 31.03.2024.
This is in continuation of Circular no. 6 of 2024 dated 23.04.2024 issued earlier by CBDT wherein the date for linking of PAN and Aadhaar was extended upto 31.05.2024 for the taxpayers (for the transactions entered into upto 31.03.2024) to avoid higher TDS/ TCS as per the Act. The Circular No. 06 of 2024 dated 23.04.2024 and Circular No. 08 of 2024 dated 05.08.2024 are available on www.incometaxindia.gov.in.