The Central Board of Direct Taxes (CBDT) has issued Circular No. 9/2025, providing a major reprieve for tax deductors and collectors. This circular addresses the grievances of deductors who received notices for short deduction of TDS/TCS on transactions involving inoperative PANs. It provides conditional relief from the liability of higher tax deduction for transactions from April 1, 2024, onwards, provided the deductee’s PAN is linked with Aadhaar within specified timelines.
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