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.
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