PAN-Aadhaar Link: The government has made it mandatory for individuals to link their Permanent Account Number with Aadhaar in order to file income tax returns. The last date for linking PAN with Aadhaar is March 31, 2023. However, according to media reports, the government is likely to extend the date beyond March 31.
“It is mandatory. Don’t delay, link it today! As per the I-T Act, it is mandatory for all PAN-holders who do not fall under the exempt category, to link their permanent account numbers (PAN) with Aadhaar before March 31, 2023. From April 1, 2023, the unlinked PAN shall become inoperative,” a public advisory issued by the I-T Department had stated.
According to a report by ET, the Central Board of Direct Taxes could extend the last date by a few months with a late fee.
Aadhaar-PAN Link: Fee and Penalty
As of now, individuals have to pay a fine of Rs 1000 for linking their PAN with Aadhaar. Till June 30 last year, this penalty was Rs 500 which was later doubled from July 1, 2022 onwards.
Is PAN-Aadhaar Link Mandatory?
Yes, linking PAN with Aadhaar is mandatory as per Section 139AA of the Income Tax Act, 1961. The government has made it compulsory for individuals to link their PAN with Aadhaar to file their income tax returns. The deadline to link PAN with Aadhaar has been extended several times in the past, and the current deadline is March 31, 2023.
What If You Don’t Link PAN With Aadhaar?
Failing to link PAN with Aadhaar may result in the PAN becoming invalid and may also attract a penalty under Section 272B of the Income Tax Act, 1961.
This will have a number of implications such as:
1. You will not be able to file return using the inoperative PAN
2. Pending returns will not be processed
3. Pending refunds cannot be issued to inoperative PANs
4 Pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative
5. Tax will be required to be deducted at a higher rate as PAN becomes inoperative.
How To Link PAN with Aadhaar?
Via the Income-Tax Department Portal
Step 1: Go to incometaxindiaefiling.gov.in
Step 2: Click on the ‘Link Aadhaar’ option under the ‘Quick Links’ section of the webpage.
Step 3: You will be redirected to a new page where the PAN number, Aadhaar number and other required details like your name need to be entered.
Via SMS
Step 1: Dial 567678 or 56161 on a mobile device to send an SMS. The format should be UIDPAN (10-digit PAN card number), 12-digit Aadhaar card number, and space.
Step 2: Following that, an SMS will inform you of the PAN-Aadhaar link status. The Aadhaar and PAN will only be linked if the taxpayer’s date of birth matches both documents.
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