Save yourself from paying double taxation. Read the description box for more details and subscribe #savetax

SAVE YOURSELF from DOUBLE tax to pay

Please follow @financewithsneha if you don't want to miss such informative updates.

Check details️

The Income Tax department on Tuesday asked taxpayers to link PAN with Aadhaar by May 31 to avoid tax deduction at a higher rate.

As per Income Tax rules, if a Permanent Account Number (PAN) is not linked to a biometric Aadhaar, TDS must be deducted at double the applicable rate.

Last month, the Income Tax department issued a circular stating that no action will be taken for short deduction of TDS in case the assessee links his PAN with Aadhaar before May 31.

“Please link your PAN to Aadhaar before May 31, 2024, if you have not already done so, to avoid tax deduction at a higher rate,” the department posted on X.

In a separate post, the IT department has asked reporting entities, including banks and foreign exchange dealers, to file an SFT return by May 31 to avoid penalties.

“The deadline to file the SFT (Statement of Specified Financial Transactions) is May 31, 2024. Avoid penalties by filing accurately and on time,” the department said.

Reporting entities that are required to file SFT returns with tax authorities include foreign exchange dealers, banks, sub-registrar, NBFC, post offices, bond/debenture issuers, mutual fund trustees investment, companies paying dividends or repurchasing shares.

These specified institutions are required to furnish details of certain financial transactions or any reportable account registered/registered/maintained by them during the year.

Through SFT, the Income Tax department keeps track of high-value transactions undertaken by an individual.

Please share this with someone who doesn't already have a link.

(PAN, Aadhaar, Income Tax, Deadline, Save Tax)