Pan Card Update: The government had instructed people from person to person to link their PAN card with Aadhaar card. The last date to link it was till 30 June 2023. In such a situation, if you have not linked your PAN with Aadhaar, then understand that your PAN card must have been deactivated. Some of the side effects of PAN card becoming useless are that you are no longer able to invest in any government scheme. With this you cannot file income tax return. Also cannot claim tax refund.
For information, let us tell you that if your PAN card has been deactivated, then some financial transactions can be done. However, more TDS and TCS can be seen in this transaction.
At the same time, Section 206AA of the Income Tax Act 1961 provides that the deductor of tax will be liable to deduct 20% tax in all transactions under TDS. Even if no PAN card has been given for deduction of tax. Whichever may be due to the PAN card of the deductor being inoperative. Thus section 206CC provides for higher TDS at double the prescribed rate or 5% in case of non-production of PAN or production of non-operative PAN card.
TDS or TCS transaction will be more if PAN is inactive
- Getting interest from bank FD, the total interest on RD in a financial year is more than 40 thousand rupees.
- To get more than 5 thousand rupees profit from companies and mutual funds in a financial year.
- The immovable property has to be sold if the selling or stamp duty per transaction exceeds Rs 50 lakh.
- If the amount is more than Rs 10 lakh, then you have to buy a car.
- Withdrawal of money from EPF account if it is more than Rs 5000 and TDS is applicable.
- If the monthly rent is more than Rs 50,000 then the landlord has to pay the rent.
- If the sale of goods exceeds Rs 50 lakh per transaction, then TDS will also be levied on that.
