Circular No. 8/2024

Non applicability of higher rate of tds/tcs as per provisions of section 206aa/206cc of the income tax act 1961 in the event of death of deductee/collectee before linkage of PAN and aadhaar

What this is

Circular No. 8/2024 was issued by the Central Board of Direct Taxes on 5 August 2024. Its subject is Non applicability of higher rate of tds/tcs as per provisions of section 206aa/206cc of the income tax act 1961 in the event of death of deductee/collectee before linkage of PAN and aadhaar.

What it does

Removes the higher-rate liability under section 206AA or section 206CC in the narrow case where the deductee or collectee died before PAN and Aadhaar could be linked. It applies to transactions entered into up to 31 March 2024 where the deductee or collectee died on or before 31 May 2024, that being the last date allowed by Circular No. 6 of 2024 dated 23 April 2024 for linking. In such cases there is no liability on the deductor or collector to deduct or collect at the higher rate.

Why it was issued

Several grievances were received citing the death of the deductee or collectee during that period, before the option to link PAN and Aadhaar could be exercised, leaving tax demands standing against the deductor or collector.

Who it reaches

Deductors holding short-deduction demands where the payee has since died
Collectors in the same position on TCS statements
Legal heirs of a deceased deductee whose PAN never got linked
Payers to deceased persons on transactions up to 31 March 2024

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.206AA	s.397
s.206AAI	no counterpart recorded

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

F.No.275/4/2024-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Circular No. 081 2024
New Delhi, the 5th August, 2024

Sub: Non-applicability of higher rate of TDSITCS as per provisions of section 206AAI 206CC of the Income-tax Act, 1961, in the event of death of deductee/coliectee before linkage of PAN and Aadhaar- reg.

As per Circular no. 06 of 2024 dated 23.04.2024, the Board had provided a window of opportunity to the taxpayers upto 31.05.2024 for linkage of PAN and Aadhaar for the transactions entered into upto 31.03.2024 so as to avoid higher deduction/collection of tax under section 206AA1206CC of the Income-tax Act, as the case maybe.

2. Several grievances have been received from the taxpayers where they have cited instances of demise of the deductee/collectee during the said period (i.e. on or before 31.05.2024) before the option to link PAN and Aadhaar could have been exercised. In such cases, tax demands are standing against the deductor/collector as a result of failure to link PAN and Aadhaar of the deceased person.

3. In order to redress such grievances of the taxpayers, the Board, hereby specifies that in respect of cases where higher rate of TDSITCS was attracted under section 206AA1206CC of the Act pertaining to the transactions entered into upto 31.03.2024 and in case of demise of the deductee/collectee on or before 31.05.2024 i.e. before the linkage of PAN and Aadhaar could have been done, there shall be no liability on the deductor/collector to deducVcoliect the tax under section 206AA1206CC, as the case maybe. The deduction/collection as mandated in other provisions of Chapter XVII-B or Chapter XVII-BB of the Act, shall be applicable.

4. Hindi version to follow.

Copy to:-
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~g~lkt '>"(
(Surjeet Kumar)
Under Secretary to the Government of India
Tele: 23095478

1. PS to FM/OSD to FM/PS to MoS (R)/OSD to MoS(R)
2. PPS to Secretary (Revenue)
3. The Chairman, CBDT & all Members, CBDT
4. All Pr.CCsIT, CCsIT/Pr.DGsITIDGsIT
5. All Joint Secretaries/CslT, CBDT

-2-

6. Pro Commissioner of Income-tax (Media & TP) and official Spokesperson, CBDT, New Delhi
7. Pr.CIT, (CPC-TDS)
8. ADG (PR,P&P) for necessary action
9. JCIT, Database Cell, with a request to upload the order on the website www.irsofficersonline.qov.in
10. Web Manager, % DGIT(Systems) with a request to upload the order on the website of www.incometaxindia.gov.in
11. The Institute of Chartered Accountants of India, IP Estate, New Delhi
12. All Chambers of Commerce
13. The Guard File

(Surjeet Kumar)
Under Secretary to the Government of India

What to watch

Both dates must be satisfied: the transaction up to 31 March 2024 and the death on or before 31 May 2024.
Deduction or collection under the other provisions of Chapter XVII-B or XVII-BB continues to apply; only the higher rate falls away.
The relief hangs on proof of the date of death, which the circular does not prescribe a form for.
A death after 31 May 2024 is outside this circular altogether.

Where you meet it

In a short-deduction demand raised on processing a TDS or TCS statement, and in the reply or rectification petition where the deductor pleads the payee's death.

What it names

It mentions. Circular No. 06/2024

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Circular No. 9/2025 — F .No. 275/04/2024-IT(B) 21 July 2025
Circular No. 6/2024 — Partial modification of circular no.3 of 2023 dated 28.03.2023 regarding consequences of PAN becoming inoperative as per 23 April 2024
Circular No. 3/2023 — Consequences of PAN becoming inoperative as per the newly substituted rule 114AAA 28 March 2023

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.