The Income Tax Department has once again provided taxpayers with an opportunity to save money. Failure to complete this task by May 31 may result in increased income tax payments.
Despite previous reminders from the department, many individuals have yet to complete this important action.could lead to increased income tax liabilities
Why Link PAN with Aadhaar?
The Income Tax Department has emphasized the importance of linking PAN with Aadhaar by May 31 to avoid higher tax deductions.
According to tax rules, failure to link PAN with Aadhaar results in twice the usual tax deduction at source (TDS).regarding the filing of Statement of Specified Financial Transactions (SFT) by May 31.
Deadline Reminder
Last month, the Income Tax Department announced that no punitive action would be taken if individuals linked their PAN with Aadhaar by May 31.
Recently, the department reiterated this deadline on the social media platform ‘X’, urging taxpayers to take action promptly.
Instructions for Reporting Entities
In addition to taxpayers, the Income Tax Department has issued instructions to reporting entities such as banks and foreign exchange dealers.
They are required to file Statement of Specified Financial Transactions (SFT) by May 31 to avoid penalties.
Understanding SFT
SFT is a mechanism through which the Income Tax Department monitors high-value transactions conducted by individuals.
Reporting entities, including banks, foreign exchange dealers, and others, must submit SFT returns to tax authorities.
Failure to do so on time can result in penalties of up to Rs 1,000 per day for each default, along with penalties for incorrect or non-submission of SFT returns.
