
The Income Tax Department extended the deadline for linking Aadhaar with PAN card last month. Taxpayers who have not yet linked their Aadhaar with PAN are advised to complete the process by June 30 to avoid the deactivation of their PAN card. The IT department has also clarified the consequences of a PAN card becoming inoperative.
"Sub-section (2) of section 139AA of the Act makes it mandatory for every person who
has been allotted a PAN as on 1 st July, 2017 to intimate his Aadhaar Number so that the Aadhaar and PAN can be linked. This is required to be done on or before a notified date, failing which the PAN shall become inoperative,"states the official circular by IT department.
According to IT rules, if an individual fails to link their Aadhaar number as per section 139AA of the Income-tax Act, 1961, their PAN will become inoperative.
This means the taxpayers will not be able to use or mention their PAN for filing returns, processing pending returns, issuing refunds, completing pending proceedings, or deducting taxes at a normal rate. Furthermore, the taxpayer may encounter difficulties with banks and other financial portals since PAN serves as an essential KYC criterion for financial transactions.
Initially, the deadline to link PAN (Permanent Account Number) with Aadhaar (unique identification number) was March 31, 2022, without any penalty fee. However, the government extended this deadline until March 31, 2023, but imposed a penalty fee of Rs. 1000 for non-compliance. Now, the deadline has been further revised to June 30, and individuals must link PAN with Aadhaar by this new deadline, also facing a penalty fee of Rs. 1000.
Notably, the following individuals are exempted from the requirement of linking their PAN with Aadhaar:
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