PAN-Aadhaar Link: The government on Tuesday extended the deadline for linking Permanent Account Number with Aadhaar by three months to June 30, 2023 to enable people comply with the mandatory income tax provisions.
The deadline for linking PAN with Aadhaar was to end on March 31.
There have been demands, including from political parties, for giving more time to people to link PAN with their unique 12-digit identification number Aadhaar.
“In order to provide some more time to the taxpayers, the date for linking PAN and Aadhaar has been extended to June 30, 2023, whereby persons can intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions,” the finance ministry said in a statement.
Also Read: PAN Card Decoded: Why PAN Number Is Must For You In India? Know Compulsory Provisions
Earlier also, the government had extended the deadline several times.
PAN-Aadhaar Link Fee And Penalty
The government had imposed a fee of Rs 500 on linking of PAN with Aadhaar from April 1, 2022 and the amount was later increased to Rs 1,000 from July 1, 2022.
It should be noted that the payment of fees of Rs 1,000 remains mandatory, and no relaxation has been given in this regard.
Is Linking PAN With Aadhaar Mandatory?
As per the income tax department, failure to link the two unique identities will lead to the unlinked PAN becoming inoperative.
Under the provisions of the Income Tax Act, 1961, every person who has been allotted a PAN as on July 1, 2017 and eligible to obtain Aadhaar Number, was required to intimate his or her Aadhaar to the prescribed authority on or before March 31, 2023, on payment of a prescribed fee.
Failure to do so would have attracted certain actions under the Act from April 1, 2023.
“The date for intimating Aadhaar to the prescribed authority for the purpose of linking PAN and Aadhaar has now been extended to June 30, 2023,” the statement said.
What If PAN Is Not Linked To Aadhaar By June 30, 2023?
From July 01, 2023, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative and the consequences during the period that PAN remains inoperative will be as follows:
– No refund shall be made against such PANs;
– Interest shall not be payable on such refund for the period during which PAN remains inoperative; and
– TDS and TCS shall be deducted /collected at a higher rate, as provided in the Act.
– The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs.1,000.
According to the ministry, those persons who have been exempted from PAN-Aadhaar linking will not be liable to face action.
This category includes those residing in specified states, a non-resident as per the Income Tax Act, an individual who is not a citizen of India or individuals of the age of eighty years or more at any time during the previous year.
So far, more than 51 crore PANs have been linked with Aadhaar.
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