If You not file Your ITR by March 31 then face a higher TDS

If you do not file your ITR by March 31, you will face a higher TDS.

• Prepare to pay a higher TDS at Source starting next month if you have not linked your Permanent Account Number or permanent account number with your Aadhaar card.
• The timeframe to link your Aadhaar number with your permanent account number has been extended to March 31. Failure to link these two documents by the deadline will affect your debit and credit card payments, online transactions, and ATM cash withdrawals, among other things.
• Every individual having a permanent account number as of July 1, 2017 who is eligible to obtain Aadhaar must link these two documents, according to Section 139AA of the Income Tax Act.
• The CBDT has continuously extended the time for linking an Aadhaar card number to a PAN during the last three years. U/s 114AA (3) of the Income Tax Act states that if the PAN is not linked to Aadhaar by the stipulated date, the PAN will become inactive.
• According to Section 139AA of the Income Tax Act, it is compulsory to quote Aadhaar numbers when applying for new PAN cards.

If you miss the deadline, be prepare to pay a higher tax deduction at source.

• If a Permanent Account Number becomes inactive, the income tax department will assume that the individual has not submitted a Permanent Account Number and will impose penalties as a result.
• Section 206AA(6) of the Income Tax Act stipulates that Taxpayers with taxable income are required to file their permanent account number card details.
• According to Section 206AA(6) of the Income Tax Act, if the taxpayer’s Permanent Account Number is invalid, it will be believed that the deductee has not supplied his permanent account number to the deductor.
• So, if you miss the March 31 deadline and your Permanent Account Number card becomes deactivated as a result of not linking it to your Aadhaar card, you must pay Tax Deduction At Source at the highest rate of 20%  U/s 206AA of the Act.
• Interest on fixed deposits, dividends, and other income that is presently subject to TDS will be subject to a greater rate of tax deduction at source.

Sushil Kumar Singh, Co-Founder, www.caindelhiindia.com, explained the new rule to investors.

“If we fail to link the Aadhaar with the permanent account number, then a higher rate of tax deduction at source, i.e. 20%, will be levied on income that is eligible for tax deduction”

For example, if the interest amount on a Fixed Deposit exceeds INR. 40,000/-, the tax deduction at source rate is 10%, but if the Aadhaar number is not linked to the PAN, the tax deduction at source rate is 20%.”

Adhaar – PAN – Linking: Every time you fail to provide a PAN, You will be Fee/ penalty Rs 10k

• A penalty of INR 10,000 can be imposed under Section 272B of the Income Tax Act if the Permanent Account Number is not quoted or furnished as stipulated by the Income Tax Law.
• The penalty could be levied for each instance of non-compliance under the provisions. Each time a defaulter fails to provide the Permanent Account Number card details, a penalty of INR 10,000 can be levied.
• This fee will be in addition to the other consequences, such as the PAN becoming inactive as a result of Aadhaar non-intimation, increased TDS Rates and so on.

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