On August 5, 2024, the Central Board of Direct Taxes (CBDT) issued Circular No. 8 of 2024, easing TDS/TCS provisions for cases where the deductee or collectee has died before linking their PAN and Aadhaar. This adjustment addresses challenges faced by taxpayers who passed away before the deadline for linking PAN and Aadhaar, set for May 31, 2024. The circular specifies that there will be no liability for deductors or collectors to withhold or collect tax under sections 206AA/206CC of the Income-tax Act, 1961, for transactions conducted up to March 31, 2024. This update follows an earlier circular (No. 6 of 2024) that extended the PAN-Aadhaar linking deadline to mitigate higher TDS/TCS rates. For detailed information, both Circular No. 6 and Circular No. 8 are available on the Income Tax India website.
Ministry of Finance
CBDT relaxes provisions of TDS/TCS in event of death of deductee/collectee, before linkage of PAN and Aadhaar
Posted On: 07 AUG 2024 2:59PM by PIB Delhi
The Central Board of Direct Taxes (CBDT) has relaxed provisions of TDS/TCS in event of death of deductee/collectee, before linkage of PAN and Aadhaar.
In view of genuine difficulties being faced by taxpayers, CBDT issued the Circular no. 8 of 2024 dated 05.08.2024, and vide the same, the Government has relaxed the provisions of TDS/TCS as per the Income-tax 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.
