The Central Council of Direct Taxes (CBDT) has issued fresh circular modifications of earlier instructions on the consequences of the permanent account number (PAN), which have become non -functional according to Rule 114AAA Rules of Income Tax.
Background
According to circulatory No. 3 of 2023, pans, which were not associated with Aadhaar, have become broken since 1 July 2023, attracted higher TDS/TCS rates according to sections 206AA and 206 cc from 1961 income tax. 2024, 2024, 2024, 2024, 2024, 2024, 2024, 2024, 2024, 2024, 2024, 2024, 2024, 2024, 2024, 2024, 2024.
However, taxpayers continued to report complaints concerning the notification of delay related to lower deductions of TDS/TCS, where there was a non -functional pelvis of the deduction or collector at the time of the transaction.
Key measures for relief in 2025
To solve these concerns, CBDT has now specified that the deductors/collectors will not be responsible for higher TDS/TCS rates according to sections 206AA/206cc:
For payments or credits made between 1 April 2024 and 31.
For payments or credits made by August 1, 2025 or later, where the pan is made within two months of the end of the month in which the transaction occurred.
In such cases, normal rules for deducting and collecting TDS/TCS will continue to apply according to other provisions of the Chapter XVII-B and XVII-BB of the Income Tax Act.
The aim of this step is to reduce disproportionate problems with compatible deductors/collectors and streamline TDS/TCS management in the middle of the ongoing promotion of Pan-Aadhaar.
(Tagstotranslate) Central Council of Direct Taxes (T) CBDT
