Key Points
While it is important to deduct TDS at the specified rate, what's more important is to deduct the correct amount of TDS based on one's PAN-Aadhaar linking status and deposit it in time with the government..
This is because if an individual has an inoperative PAN, then a higher rate of TDS is to be deducted..
The TDS deductor or collector will have to bear all legal repercussions and tax penalties just because he/she failed to check the status of the deductee's PAN and deducted a lower TDS amount...
"If the TDS deductor does not check the status of PAN of the deductee on the date of TDS deduction then all the penalty and other legal repercussions would be applied to him and nobody else..
Recently, many of our clients have received 'short deduction of TDS' notices from the Tax Department on account of PAN-Aadhar linking status on the 'Date of Payment of Consideration' for sale of property viz-a-viz on the 'Date of Payment of TDS' to the Government," Tanna further added...
