New Delhi: Is PAN card still not linked with your Aadhaar card? There may be several financial repercussion –one being higher TDS. Those pan card holders who have still not linked it with their Aadhaar card will have to eke out higher Tax Deduction at Source (TDS) from July 1. The last date to link PAN Card with Aadhaar card is June 30.
As per Section 206AA, Rule 114AAA(3) of Income-tax Rules, 1962, higher TDS @20 percent will be levied if people fail to link their PAN card with Aadhaar Card by June 30. The higher rate of TDS @20 percent however will be deducted on incomes gained from interest on fixed deposit and dividends, among others.
Also, to avoid any confusion, you must update the banking authorities regarding the linking of your PAN Card with the Aadhaar so that they don’t cut higher TDS on your investments. If still, your TDS is being deducted at higher rate somehow, you can apply for a refund of the excess TDS filing your Income Tax Return (ITR) for the financial year.
Also, if you fail to meet the deadline regarding linking of PAN with Aadhaar, it might result your PAN card being inoperative as well as attract a late fee.
The previous deadline for linking PAN card with Aadhaar was March 31, 2021. The Central Board of Direct Taxes (CBDT) however extended the deadline for linking of Permanent Account Number (PAN) card with Aadhaar card deadline by three months till June 30, 2021.
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