PAN-Aadhaar not linked: Higher TDS rates waived off for deceased taxpayers

The Central Board of Direct Taxes (CBDT) has released a circular saying the higher rate of tax deducted at source (TDS)/ tax collected at source (TCS) will not apply if the PAN and Aadhaar of the deductee or collectee is not linked due to their death.

This circular clarifies that deductors and collectors are not liable for higher tax rates under sections 206AA and 206CC for transactions conducted up to March 31, 2024, if the deductee or collectee passed away on or before May 31, 2024.