CBDT provides relief from tax demand raised in PAN inoperative cases

Recently, the Central Board of Direct Taxes (‘CBDT’), vide Circular No. 6/ 2024 dated 23 April 2024, provided that for all transactions entered upto 31 March 2024 and in cases where the PAN becomes operative (as a result of linkage with Aadhaar) on or before 31 May 2024, no liability shall arise on the deductor/ collector to deduct/ collect tax at a higher rate as prescribed under section 206AA/ 206CC of the Income Tax Act, 1961 (‘the Act’), as the case may be. In other words, the rates of TDS/ TCS as provided under other provisions of the Act shall only be applicable.   

In the attached newsflash, we have summarised the said CBDT Circular dated 23 April 2024. 

Hope you would find the same useful.