The deadline for linking PAN and Aadhaar was in order to provide taxpayers more time. The Central Board of Direct Taxes (CBDT) made the extension announcement via a press release dated March 28, 2023.
When is the last date to link PAN-Aadhaar?
The last date has been extended to June 30, 2023.
PAN-Aadhaar linking fine
You will be charged Rs.500 if you link your PAN to your Aadhaar on or before June 30, 2022. If the PAN-Aadhaar link is completed on or after July 1, 2022, a charge of Rs.1,000 would be required. The fees have now been dismantled into their individual components.
Consequences of not linking
From July 1, 2023, the PAN of taxpayers who have failed to link their Aadhaar, as required, shall become inoperative. 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 higher rate, as provided in the Act
After informing the prescribed authority and paying a cost of Rs.1,000, the PAN can be made operational again in 30 days.
The category of individuals who don’t have to link PAN with Aadhaar includes those residing in specified States, a non-resident as per the 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.
The Income Tax administration stated that anyone who fall into one of the aforementioned categories can voluntarily link their Aadhaar with PAN.
Who should link
According to Section 139AA of the Income Tax Act, every person who was assigned a permanent account number (PAN) as of July 1, 2017, and who is eligible for an Aadhaar number, must notify his Aadhaar number in the manner and form specified by law. Simply put, such individuals must mandatorily link their Aadhaar and PAN.
What happens if Aadhaar- Pan is not linked
According to the CBDT circular dated March 30, 2022, “Hence, to have the smooth application of section 234H and existing rule 114AAA, it is clarified that the impact of sub-rule (2) of rule 114AAA i.e. where a person. whose permanent account number has become inoperative under sub-rule (1) is required to furnish intimate or quote his permanent account number under the Act it shall be deemed that he has not furnished intimated or quoted the permanent account number as the case may be. In accordance with the provisions of the Act and he shall be liable for all the consequences under the Act for not turnishing intimating or quoting the permanent account number shall come into effect from 1 st April, 2023 and the period beginning from 1st April, 2022 and ending with 31st March, 2023, shall be the period during which the said sub-rule shall not have its negative consequences of the nature referred to in the said sub-rule or specified in paras 4 and 4.1 above. However, the tax payer shall be liable to pay a fee in accordance with sub-rule (5A) of rule 114.”
Source By: economictimes
