How to link PAN-card with Aadhaar card on July 1.
How to link PAN-card Check the status of PAN-Aadhaar linking to avoid a double penalty on July 1.
The Income Tax Department has started that failure to link a PAN with Aadhaar by March 31 will result in a penalty of up to Rs 1,000. Still, such PAN will be functional for one more year, until March 2023, for filing ITR, claiming refunds, and other I-T procedures.
The apex direct tax decision-making body, has previously extended the deadline for relating Permanent Account Number (PAN) with Aadhaar. However, there is good and bad news regarding linking PAN cards and Aadhaar cards.
According to a CBDT circular, PANs not linked to Aadhaar will become “inoperative” after March 31, 2023.
The Income Tax Department has said that failure to link a PAN with Aadhaar by March 31 will result in a penalty of up to Rs 1,000. Still, such PAN will be functional for one more year, until March 2023. For filing ITR, claiming refunds, and other I-T procedures.
The bad news is that taxpayers who do not link their PAN Card to biometric Aadhaar by June 30, 2022, will be demanded a Rs 500 late fee. The penalty would then increase to Rs 1,000.
To alleviate taxpayers’ inconvenience, the CBDT said in a notification dated March 29, 2022. Taxpayers have until March 31, 2023, to notify the prescribed authority for Aadhaar-PAN linking without facing repercussions, adding that such information would have to be accompanied by late fees.
“However, until March 31, 2023, the PAN of assessees who have not intimated. Their Aadhaar will continue to be functional for the Act’s procedures, such as furnishing of return of income. Processing of refunds, and so on,” the CBDT statement said.
What happens if your PAN is rendere inactive?
The PAN of taxpayers who starve to intimate their Aadhaar like required will become inoperative after March 31, 2023. And all the consequences under the Act for not furnishing, intimating. Or quoting the PAN will apply to such taxpayers, the CBDT added.
When your PAN becomes inactive, you will be barred from conducting financial transactions (where PAN quoting is required, such as mutual funds). Subject to higher TDS rates, and penalized under Section 272B.
