The Income Tax Department has issued a crucial reminder for taxpayers: link your Permanent Account Number (PAN) with your Aadhaar by May 31, 2024. This announcement, shared on X (formerly Twitter), highlights the significance of this deadline to avoid increased tax deductions at source (TDS).

Key Reminder from the I-T Department

On May 28, 2024, the Income Tax Department took to social media to emphasize this critical deadline. The department’s message was clear: failure to link your PAN with Aadhaar by May 31 will result in higher TDS rates.

“Kind attention taxpayers, please link your PAN with Aadhaar before May 31, 2024… Linking your PAN with your Aadhaar by May 31 ensures you don’t face higher tax deduction/tax collection under Section 206AA and 206CC of the Income Tax Act, 1961, due to an inoperative PAN for transactions entered into before March 31, 2024,” read the post.

Implications of Missing the Deadline

Taxpayers who do not link their PAN with Aadhaar by the deadline will face significant financial consequences. Specifically, they will be subject to higher tax deductions and collections as per Sections 206AA and 206CC of the Income Tax Act, 1961. This mandate is designed to enforce compliance and streamline tax administration.

Previous Circular from CBDT

This reminder follows an earlier circular issued on April 23, 2024, by the Central Board of Direct Taxes (CBDT). Circular No. 6/2024 detailed the regulations surrounding PAN-Aadhaar linking and outlined the penalties for non-compliance.

How to Link PAN with Aadhaar

Step-by-Step Guide