📢 CBDT Circular No. 09/2025 – Relief on Higher TDS/TCS Due to PAN-Aadhaar Linking

📢 CBDT Circular No. 09/2025 – Relief on Higher TDS/TCS Due to PAN-Aadhaar Linking

🗓️ Issued: July 2025 | Effective: Retrospective from 01.04.2024

🧾 A major relief for taxpayers and deductors regarding Section 206AA & 206CC implications.

📍Disclaimer: This update is intended for general informational purposes only and does not constitute legal or tax advice. Please refer to official circulars and consult with a qualified tax professional before acting on this information.

🔍 Key Provisions of the Circular:

➡️ No higher TDS/TCS rate shall apply due to non-linking of PAN with Aadhaar if:

📌 Period 1:

Amount paid/credited between 01.04.2024 to 31.07.2025

👉 PAN is linked with Aadhaar on or before 30.09.2025

📌 Period 2:

Amount paid/credited on or after 01.08.2025

👉 PAN is linked with Aadhaar within 2 months from the end of the month in which the amount is paid/credited

✅ Practical Impact:

• Saves taxpayers from paying higher TDS/TCS and additional interest for delayed PAN-Aadhaar linking.

• Provides reasonable time window (2 months) to rectify PAN-Aadhaar status post-transaction.

• Encourages compliance over penal consequences.

🗂️ This clarification applies across Sections 206AA (TDS) and 206CC (TCS) and will help deductors and collectors apply correct rates with minimal disputes.

🤝 Thanks to @FinMinIndia and @IncomeTaxIndia for this practical and taxpayer-friendly move!

📌 Professional Tip:

💡 Verify PAN-Aadhaar linkage proactively to avoid administrative hassles, delayed refunds, or deduction mismatches in Form 26AS.

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