Vide Circular No. 6 / 2024 dated 23rd April 2024, relief has been provided for deduction / collection of tax at a higher rate for ‘Inoperative PANs’ as per an earlier Circular No. 3 dated 28th March 2023.
After receiving several grievances on the default notices for ‘short deduction / collection’ owing to the ‘inoperative PAN’, the Income Tax Department has substantially addressed the same by partially modifying the earlier circular.
It specifies that for the transactions entered upto 31st March 2024 and in cases where the PAN becomes operative (as a result of linkage with Aadhaar) on or before 31st May 2024, there shall be no liability on the Deductor / Collector to deduct / collect the tax u/s 206AA / 206CC at a higher rate.
Click on links below to view the referred circulars.
Circular No. 6 dated 23rd April ‘24
Circular No. 3 dated 28th March ‘23