- By Aditya Pratap Singh
- Tue, 28 May 2024 02:15 PM (IST)
- Source:PTI
ITR Filling: The Income Tax Department on Tuesday urged taxpayers to link their PAN with Aadhaar by May 31st in order to avoid being charged a higher tax rate. According to the Income Tax regulations, if the Permanent Account Number (PAN) is not linked with the biometric Aadhaar, TDS must be withheld at double the applicable rate.
Last month, the Income Tax Department issued a circular stating that no action would be taken for short TDS deduction if the taxpayer linked his or 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 posted on X.
In a separate post, the IT department asked reporting entities such as banks and forex dealers to file SFTs by May 31st in order to avoid penalties.
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"The deadline to file SFT (Statement of Specified Financial Transactions) is May 31, 2024. Avoid penalties by filing accurately and on time," the department said.
Reporting entities that are required to file SFT returns with the tax authorities include foreign exchange dealers, banks, sub-registrars, NBFCs, post offices, bond/debenture issuers, mutual fund trustees, companies paying dividends or buying back shares. are involved. These specified institutions are required to provide details of certain financial transactions or any reportable accounts registered/recorded/maintained by them during the year.
Failure to file SFT returns on time may result in a penalty of up to Rs 1,000 per day of default. A penalty may also be imposed for non-filing or filing incorrect details. SFTs are used by the Income Tax Department to keep track of high-value transactions conducted by an individual.
(With PTI's input)
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