New Delhi: The Central Board of Direct Taxes (CBDT) has relaxed the provisions of TDS/TCS in the event of the death of deductee/collectee, before the linkage of PAN and Aadhaar, according to an official statement issued on Wednesday.
“To redress the grievances of the taxpayers wherein instances have been cited, of demise of the deductee/collectee on or before 31.05.2024 and before the option to link PAN and Aadhaar could have been exercised, the Circular provides that there shall be no liability on the deductor/collector to deduct/collect the tax under section 206AA/206CC of the Act, as the case may be pertaining to the transactions entered into up to March 31, 2024,” an official statement read.
In view of the genuine difficulties being faced by the taxpayers, the CBDT issued the Circular dated 05.08.2024, and vide the same, the government has relaxed the provisions of TDS/TCS as per the Income-tax Act, 1961, in the event of death of deductee/collectee before linking of PAN and Aadhaar, it added.
According to the statement, the Circular is in continuation of Circular No. 6 of 2024 issued earlier by the CBDT wherein the date for linking of PAN and Aadhaar was extended up to 31.05.2024 for the taxpayers (for the transactions entered into up to 31.03.2024) to avoid higher TDS/ TCS as per the Act.
Meanwhile, industry experts have hailed the government’s decision to introduce an amendment to long-term capital gains (LTCG) tax on real estate transactions, saying the move will offer flexibility for sellers.
Paying heed to the industry’s demand, the government on Tuesday moved an amendment to the Finance Bill 2024, to allow taxpayers to select either a 12.5 per cent long-term capital gains (LTCG) tax rate without indexation or a 20 per cent rate with indexation for property acquired before July 23 this year.
Experts said this amendment is expected to stimulate investment and sales in the housing market by potentially reducing the tax burden on sellers.