CBDT forms internal committee to oversee comprehensive review of I-T Act
This is in pursuance of the announcement in the Union Budget 2024-25 by Union Finance Minister Nirmala Sitharaman.
The Central Board of Direct Taxes (CBDT) has relaxed provisions of TDS/TCS in the event of the death of a deductee/collectee, before linkage of PAN and Aadhaar.
In view of genuine difficulties being faced by taxpayers, the CBDT issued a circular on Monday relaxing the provisions of TDS/TCS as per the Income-tax Act, 1961(the ‘Act’) in the event of the 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 the 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 may be about the transactions entered into upto 31.03.2024,” an official press release said on Wednesday.
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The release said this is in continuation of a circular dated 23.04.2024 issued earlier by the CBDT wherein the date for linking of PAN and Aadhaar was extended up to 31.05.2024 for the taxpayers (for the transactions entered into up to 31.03.2024) to avoid higher TDS/ TCS as per the Act.
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