May 28th 2024.
The income tax department has issued a call to action for taxpayers, urging them to link their PAN (Permanent Account Number) with Aadhaar, the biometric identification system, by May 31. Failure to do so could result in a higher tax deduction rate, as per the rules set by the income tax department.
In simpler terms, if your PAN is not linked with Aadhaar, TDS (Tax Deducted at Source) will be deducted at a rate that is twice the usual amount. However, the department has also announced that no action will be taken for any short deduction of TDS if the PAN is linked with Aadhaar by the end of May.
The department has taken to its official social media account, X, to remind taxpayers of this deadline. They have urged individuals who have not yet linked their PAN with Aadhaar to do so before May 31, 2024, in order to avoid any complications with tax deductions.
In addition to this, the income tax department has also reminded reporting entities such as banks and forex dealers to file their SFT (Statement of Financial Transactions) by May 31 to avoid any penalties. The department has emphasized the importance of filing these statements accurately and on time in order to avoid any consequences.
SFT is a way for the income tax department to track high-value financial transactions made by individuals. It is mandatory for reporting entities such as banks, sub-registrars, and mutual fund trustees to provide details of such transactions and any reportable accounts maintained by them during the year.
Failure to file SFT returns on time may result in a penalty of up to Rs 1,000 for each day of delay. Non-filing or filing inaccurate statements may also lead to the levy of penalties. Therefore, it is crucial for reporting entities to adhere to the May 31 deadline and file their SFT returns accurately.
In conclusion, it is important for taxpayers to link their PAN with Aadhaar and for reporting entities to file their SFT returns on time to avoid any complications or penalties. Let us all do our part in ensuring a smooth and efficient tax process.
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