PAN Aadhaar linking status check must for TDS Deduction to avoid Income Tax Notice

Individuals must subtract Tax Deducted at Source (TDS) before making certain payments. While it is vital to deduct TDS at the specified rate, it is much more crucial to deduct the appropriate amount of TDS based on one’s PAN-Aadhaar linking status and deposit it with the government on time.

This is because if a person’s PAN is inoperative, a greater rate of TDS will be deducted. If a PAN is not linked to Aadhaar, it becomes inoperative or inactive.

The TDS deductor or collector will face all legal consequences and tax penalties just because he or she neglected to check the status of the deductee’s PAN and deducted a smaller TDS amount.

If the TDS deductor fails to check the status of the deductee’s PAN on the date of the TDS deduction, the penalty and other legal consequences will be imposed solely on him, as it is the TDS deductor’s responsibility to do so.