The CBDT issued Circular No. 9/2025, granting relief from higher TDS/TCS liability for inoperative PANs under Section 206AA/206CC. This aims to alleviate financial burdens on taxpayers affected by PAN issues.
CBDT Circular on TDS Relief for Inoperative PANs
The Central Board of Direct Taxes (CBDT) has recently released Circular No. 9/2025 dated July 21, 2025, providing significant relief for taxpayers with inoperative PANs. Under this circular, the demand for higher Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) liabilities under Sections 206AA and 206CC has been mitigated.
This provision aims to address the practical difficulties faced by taxpayers who, due to various reasons, have inoperative PAN that may unjustly subject them to elevated tax liability. By allowing relief, the CBDT aims to ensure that compliance does not lead to undue hardship on taxpayers.
Tax practitioners should be aware of this circular as it provides a greater flexibility for clients facing issues with their PAN status, potentially reducing their tax burden. It underscores the importance of ensuring PAN compliance and offers a pathway to remediate undue financial implications stemming from technicalities.
Citations
- CBDT Circular No. 9/2025
