circular no. 8/2024 non applicability of higher rate of tds/tcs as per provisions of section 206aa/206cc of the income tax act 1961 in the event of death of deductee/collectee before linkage of pan and aadhaar

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F.No.275/4/2024-IT(B) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Circular No. 081 2024 New Delhi, the 5th August, 2024 Sub: Non-applicability of higher rate of TDSITCS as per provisions of section 206AAI 206CC of the Income-tax Act, 1961, in the event of death of deductee/coliectee before linkage of PAN and Aadhaar- reg. As per Circular no. 06 of 2024 dated 23.04.2024, the Board had provided a window of opportunity to the taxpayers upto 31 .05.2024 for linkage of PAN and Aadhaar for the transactions entered into upto 31.03.2024 so as to avoid higher deduction/collection of tax under section 206AA1206CC of the Income-tax Act, as the case maybe. 2. Several grievances have been received from the taxpayers where they have cited instances of demise of the deductee/collectee during the said period (i.e. on or before 31.05.2024) before the option to link PAN and Aadhaar could have been exercised. In such cases, tax demands are standing against the deductor/collector as a result of failure to link PAN and Aadhaar of the deceased person. 3. In order to redress such grievances of the taxpayers, the Board, hereby specifies that in respect of cases where higher rate of TDSITCS was attracted under section 206AA1206CC of the Act pertaining to the transactions entered into upto 31.03.2024 and in case of demise of the deductee/collectee on or before 31.05.2024 i.e. before the linkage of PAN and Aadhaar could have been done, there shall be no liability on the deductor/collector to deducVcoliect the tax under section 206AA1206CC, as the case maybe. The deduction/collection as mandated in other provisions of Chapter XVII-B or Chapter XVII-BB of the Act, shall be applicable. 4. Hindi version to follow. Copy to:- () · ~lkt ~g . '>"( (Surjeet Kumar) Under Secretary to the Government of India Tele: 23095478 1. PS to FM/OSD to FM/PS to MoS (R)/OSD to MoS(R) 2. PPS to Secretary (Revenue) 3. The Chairman, CBDT & all Members, CBDT 4. All Pr.CCsIT, CCsIT/Pr.DGsITIDGsIT 5. All Joint Secretaries/CslT, CBDT -2- 6. Pro Commissioner of Income-tax (Media & TP) and official Spokesperson, CBDT, New Delhi 7. Pr.CIT, (CPC-TDS) 8. ADG (PR,P&P) for necessary action 9. JCIT, Database Cell, with a request to upload the order on the website www.irsofficersonline.qov.in 10. Web Manager, % DGIT(Systems) with a request to upload the order on the website of www.incometaxindia.gov.in 11. The Institute of Chartered Accountants of India, IP Estate, New Delhi 12. All Chambers of Commerce 13. The Guard File (Surjeet Kumar) Under Secretary to the Government of India