Get ready to pay higher TDS if you fail to do THIS by June 30

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New Delhi: You may have to shell out higher tax deduction at source (TDS) if you fail to link Permanent Account Number (PAN) with your Aadhaar card by June 30, which is the last date to link the two important documents. 

How much TDS will be charged if PAN is not linked with Aadhaar? 

Section 206AA, Rule 114AAA(3) of Income-tax Rules, 1962, points out that TDS will deduct at a higher rate of 20% if you fail to link your Aadhaar Card with your PAN card by June 30, 2021.

However, the 20% TDS will be deducted on incomes gained from interest on fixed deposit and dividends, among others. Basically, all those incomes in which TDS is charged will attract a higher rate of 20% if PAN is not linked with Aadhaar. 

Once you have linked the PAN Card with the Aadhaar, you need to update the authorities handling your investment such as banks and Post Office about the same so that they don’t cut TDS on your investments. Also Read: Air India Express flies India’s 1st international flight with fully vaccinated crew

If they, however, cut higher TDS then you can apply for a refund of the excess tax deducted at source while filing your Income Tax Return (ITR) for the financial year.

Besides paying higher TDS, you won’t be able to use several banking services such as disruptions in online payments via mobile banking and UPI. You may also face troubles in transacting via debit and credit cards. 

According to Rule 114AAA(3) of the Income-tax Rules, 1962 (‘Rules’), your PAN card will be considered inoperative/invalid from July 1, 2021, if you fail to link it with Aadhaar by June 30, 2021. Read more: 7th Pay Commission: Government extends appraisal 2021 timeline again for Group A, B, C officers

 

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