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CBDT grants relief to payers for past transactions where payee has linked PAN with Aadhaar number by the specified date
This Tax Alert summarizes Circular No. 6 of 2024 dated 23 April 2024 (Circular) issued by the Central Board of Direct Taxes (CBDT), wherein the CBDT has granted relief to taxpayers, being persons responsible for withholding or collection of taxes under the Indian Tax Laws (ITL) (hereinafter referred to as Payer/Collector), for default in withholding or collection of taxes at a higher rate in respect of transactions undertaken till 31 March 2024 against inoperative PAN (i.e., PAN of a taxpayer that has not linked its PAN with Aadhaar number ) on the date of the transaction.
The CBDT, vide this Circular, has clarified that no liability of higher withholding or collection of taxes shall be imposed on the Payer/Collector in respect of transactions undertaken till 31 March 2024 if PAN of the counter party becomes operative on or before 31 May 2024 and, consequently, general provisions of the ITL applicable to withholding or collection of taxes shall be applicable.