In a significant move, the Centralized Processing Cell (TDS) has reprocessed TDS returns for the 2023-24 financial year, removing short deduction demands caused by higher TDS/TCS rates due to unlinked PAN-Aadhaar.
The reprocessing follows a recent circular aimed at aiding taxpayers who faced higher rates because their PAN wasn’t linked to Aadhaar. The circular specifies that transactions up to March 31, 2024, qualify for this relief if the PAN is linked to Aadhaar by May 31, 2024. This initiative is designed to ease the burden on taxpayers and streamline compliance.
Acting swiftly, the CPC (TDS) reworked the relevant TDS returns, effectively reducing the short deduction demands resulting from the higher rates applied to non-linked PANs. The Income Tax Department announced that this reprocessing and demand removal would be completed by the first week of June 2024, offering timely relief to affected taxpayers.
Experts urge taxpayers to review their reprocessed TDS returns to confirm that the short deduction demands have been addressed. This verification is essential to ensure that the returns reflect accurate TDS levels and comply with the circular’s provisions.
Steps to Verify Updated TDS Returns:
- Log in to the TRACES Portal: Access the portal using your credentials.
- Access the TDS Statement: Navigate to the TDS statement for the 2023-24 financial year.
- Check for Updates: Ensure the statement shows that the short deduction demands have been removed.
- Cross-check with Circular: Verify that the changes align with the circular’s guidelines.
Taxpayers and experts alike are encouraged to take these steps to ensure compliance and benefit from this much-needed relief.
