CBDT relaxes provisions of TDS, TCS in death of deductee or collectee

The Central Board of Direct Taxes (CBDT) has relaxed provisions of TDS/TCS in the event of the death of deductee or collectee, before the linkage of PAN and Aadhaar.

In response to taxpayers' real challenges, the Central Board of Direct Taxes (CBDT) has issued Circular No. 8 of 2024 dated 05.08.2024.

Through this circular, the Government has eased the provisions of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) as per the Income-tax Act, 1961 in cases where the person entitled to the deduction or collection has passed away before linking their PAN and Aadhaar.

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To redress the grievances of the taxpayers wherein instances have been cited, of demise of the deductee/collected 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 on the transactions entered into upto 31.03.2024.

 

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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.

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