PAN-Aadhaar Link: The deadline for linking a permanent account number (PAN) to a biometric Aadhaar is March 31.
According to Section 139AA of the Income Tax Act of 1961, it is mandatory for all users to link their PAN with their Aadhaar number, or the former will become inoperative on March 31, 2023.
This means that users will be unable to conduct transactions where quoting PAN is required, such as mutual funds.
It should be noted that for those who miss the deadline, PAN will be valid for another year, until March 2023, for filing ITR, claiming refunds, and other I-T procedures. To alleviate the inconvenience to taxpayers, the CBDT said in a notification dated March 29, 2022, a window of opportunity has been provided to taxpayers up to March 31, 2023 to notify the prescribed authority for Aadhaar-PAN linking without facing repercussions, adding that such notification would have to be accompanied by late fees.
The deadline has been extended several times by the government in recent years. In response to the challenges posed by the coronavirus pandemic, the deadline was pushed back from September 30, 2021 to March 31, 2022 in September of last year.
Aadhaar is a 10-digit alphanumeric number assigned by the Income Tax (I-T) department to a person, firm, or entity by the Unique Identification Authority of India (UIDAI).
According to available data, more than 43.34 crore PANs have been linked with Aadhaar as of January 24, 2022. So far, over 131 crore Aadhaar cards have been distributed. The linking of PAN and Aadhaar would aid in the elimination of duplicate PANs and the reduction of tax evasion.
The Central Board of Direct Taxes (CBDT) reminded users in a tweet to adhere to the deadline and link PAN with Aadhaar to aid in the quick verification of Income Tax returns (ITRs).
How To Link:
- Visit the e-filing portal of the I-T department (www.incometaxindiaefiling.gov.in)
- Under the ‘Quick Links’ section, click on ‘Link Aadhaar’
- Enter in the PAN, Aadhaar number and other required details.
- Put a tick on the box only if the birth year is mentioned in your Aadhaar card and then click the check box for agreeing to validate your Aadhaar details with UIDAI.
- Enter the captcha code on your screen (visually challenged users can request for one-time password, or OTP, instead of the captcha code).
- Click on the ‘Link Aadhaar’ tab. Alternatively, it can also be linked via SMS:
- Send SMS from Aadhaar registered mobile number at 567678 or 56161.
- SMS should be in the format: UIDPAN <12-digit Aadhaar><10-digit PAN>
- Ensure space between UIDPAN, your Aadhaar number and PAN
How To Check Status
In a notification, the CBDT stated that delayed Aadhaar intimation will result in a Rs 500 late fee if it is not linked within the next three months or by June 30, 2022. Following that, taxpayers would be required to pay a penalty of Rs 1,000.
PAN will become inoperative if it is not linked to Aadhaar. According to a CBDT notification dated March 29, it can be re-operationalized upon payment of a penalty.
As previously stated, after March 31, 2023, taxpayers who fail to intimate their Aadhaar as required will have their PAN rendered inoperative, and all the consequences under the Act for failing to furnish, intimate, or quoting the PAN will apply to such taxpayers, according to the CBDT.
While PAN is used for a variety of transactions such as opening a bank account, purchasing immovable property, or proving identity, an inactive PAN will cause a domino effect, and individuals who have not linked their Aadhaar may face a slew of difficulties.
“Once your PAN becomes inactive, the person will be restricted from doing financial transactions (where quoting of PAN is mandatory, such as mutual funds), subject to TDS at higher rates, and penalised under section 272B,” Neeraj Agarwala, Partner at Nangia Andersen LLP, told news agency PTI.
ALSO READ: 5 Must have applications for every Traveler
