PAN-Aadhaar Link: What will happen if you miss March 31 deadline?
Story by: Basudha Das
Designed by: Pragati
The Central Board of Direct Taxes (CBDT) has mandated all taxpayers to link their Aadhaar cards with their permanent account number (PAN) by March 31, 2023.
Linking PAN and Aadhaar
As per Section 139AA of the Income Tax Act 1961, every person eligible should link his or her Aadhaar numbers to their PAN cards by the end of this fiscal.
PAN-Aadhaar linking
deadline
Capital markets regulator Sebi asked investors to link their PAN with their Aadhaar number by March 31, 2023, for smooth transactions in the securities market.
Sebi’s deadline for
PAN-Aadhaar linking
If you fail to link PAN
and Aadhaar…
Non-compliance with the deadline for PAN-Aadhaar linking would be considered non-KYC compliant, Sebi said.
If you fail to link your Aadhaar with your PAN by March 31, 2023, your 10-digit unique alphanumeric PAN number will become inoperative.
PAN-Aadhaar linking:
Missing the deadline
The linking of PAN cards and Aadhaar cards will reduce the incidence of duplicate PAN cards, which paves way for inaccurate calculation and collection of taxes.
Why should you link
Aadhaar with PAN?
If an Aadhaar card is not linked to a PAN card, TDS/TCS deduction will attract a higher rate applicable to PAN.
Aadhaar-PAN card
not linked
Investors will not be able to carry out any transactions in NSE or BSE.
Aadhaar-PAN link:
No market trading
In case of no Aadhaar-PAN link, one can not invest in a Fixed Deposit scheme above Rs 50,000, deposit cash above Rs 50,000, get a new Debit/Credit Card, or invest in Mutual Funds.
Blocked bank services
Taxpayers who have not yet linked their Aadhaar with their PAN can do so by paying a late fee of Rs 1,000.
Aadhaar-PAN link:
Late fee
- Those residing in the states of Assam, Jammu and Kashmir, and Meghalaya.
- Individuals who are eighty years or more