The income tax department has reminded taxpayers to link their PAN with Aadhaar by May 31 to avoid higher tax deduction rates. If your PAN is not linked with Aadhaar, TDS will be deducted at double the regular rate.
However, the department has also announced that no action will be taken for short deduction of TDS if the linking is done by the deadline.
In addition, reporting entities such as banks and forex dealers must file their Statement of Specified Financial Transactions (SFT) by May 31 to avoid penalties. Failure to file or inaccuracies in filing may result in penalties, and the deadline must be adhered to for accurate and timely filing.
Entities required to file SFT returns include forex dealers, banks, sub-registrars, NBFCs, post offices, issuers of bonds/debentures, mutual fund trustees, and companies involved in dividends or share buybacks.
These institutions must report certain financial transactions or reportable accounts they have registered or maintained during the year.
Failure to file SFT returns on time may result in a penalty of up to Rs 1,000 per day of default, and non-filing or inaccurate filing may lead to further penalties. SFT helps the income tax department monitor high-value transactions made by individuals.
How to Link PAN with Aadhaar
Linking your PAN to Aadhaar is an easy process. Here’s how you can do it online through the Income Tax Department’s website: https://www.incometax.gov.in/iec/foportal/. Follow these steps:
- Visit the Income Tax Department’s website.
- In the “Quick Links” section, select “Link Aadhaar.”
- Enter your PAN number, Aadhaar number, and your name as it appears on your Aadhaar card.
- Enter your registered mobile number and select “Link Aadhaar.”
- You will receive a one-time password (OTP) on your mobile number. Enter the OTP and press “Submit.”
That’s it! Your PAN should now be linked with your Aadhaar card. You can check the linking status on the same website.
Don’t Wait Until the Last Minute!
It’s crucial to link your PAN with Aadhaar as soon as possible to avoid any potential issues. The deadline is May 31, 2024, so don’t wait until the last moment. Take a few minutes today to complete the online process and ensure your tax filings and financial transactions proceed smoothly.