Starting from April 1, your Permanent Account Number (PAN) will be inoperative if you fail to link it with Aadhaar. According to the Section 139AA of the Income Tax Act, every individual with PAN as on July 1, 2017 and is eligible to obtain Aadhaar, must link PAN with Aadhaar on or before March 31. If taxpayers fail to link PAN and Aadhaar within the deadline, their PAN will become inoperative. Moreover, all the procedures in which a PAN is required, will be halted, according to the latest notification by the Central Board of Direct Taxes (CBDT).
The CBDT has extended the deadline for linking Addhaar with Permanent Account Number (PAN) to March 31, 2023. “In order to mitigate the inconvenience to the taxpayers, a window of opportunity has been provided to the taxpayers upto 31st of March, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions,” the CBDT said in a statement. However, there will be consequences if you miss the March 31 deadline to link your PAN and Aadhaar.
PAN to Become Inoperative after April 1 if…
PAN or Permanent Account Number becomes inoperative if a taxpayer fails to link it with Aadhaar on or before March 31, 2022. To make PAN operative, they have to pay a penalty, ranging up to Rs 10,000. “The taxpayers will be required to pay a fee of Rs 500 up to three months from April 1, 2022 and a fee of Rs 1,000 after that, while intimating their Aadhaar,” the CBDT said.
PAN-Aadhaar Linking: New Rule
It must be mentioned that the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Income Tax Act, like furnishing of return of income, processing of refunds etc, according to the statement released by CBDT. However, the other areas where it is mandatory to mention PAN, will be impacted if it becomes inoperative.
Commenting on PAN-Aadhaar linking deadline, Sujit Bangar, founder, Taxbuddy.com earlier said, “Even though deadline for linking of PAN with Aadhar has been extended, it’s advisable to completed this linkage as early as possible. Linkage of PAN and Aadhar has lot of benefits like early receipt of refund.”
PAN-Aadhaar Linking Deadline Extended
“Where a person, whose permanent account number has become inoperative…, is required to furnish, intimate or quote his permanent account number under the Act, it shall be deemed that he has not furnished, intimated or quoted the permanent account number, as the case may be, in accordance with the provisions of the Act, and he shall be liable for all the consequences under the Act for not furnishing, intimating or quoting the permanent account number,” the CBDT mentioned earlier.
“After March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers,” CBDT added.
Read all the Latest Business News and Breaking News here
Comments
0 comment