PAN Will Become ‘inactive’ After March 2023 If Not Linked With Aadhaar
New Delhi (NewsReach) : The Central Board of Direct Taxes (CBDT) has said that taxpayers who do not link Permanent Account Number (PAN) with Unique Identification Number (Aadhaar) by March 31, 2022 will have to pay a fine ranging from Rs 500 to Rs 1,000.
However, such PAN’s will be operational till March 2023 and taxpayers will be able to use them for filing income tax returns, getting refund and other income tax functions. The last date for linking PAN with Biometric Aadhaar is March 31, 2022. The CBDT said in a notification that late reporting of Aadhaar will attract a late fee of Rs 500.
This penalty fee will be for the next three months i.e. till June 30, 2022. After that the taxpayers will have to pay a fine of Rs 1,000.
On the other hand, in case of non-linking of PAN with Aadhaar, PAN will become inactive after March 31, 2023. As per the notification issued by the CBDT on March 29, 2022, an opportunity is being given to the taxpayers for relief. They will be able to submit their Aadhaar details for Aadhaar-PAN linking to the concerned authority by March 31, 2023. Along with such intimation, they will also have to pay a late fee.
The CBDT said in a statement that on March 31, 2023, the PAN of the taxpayers who have not furnished Aadhaar details will continue to file income tax returns, get refund under the Act.
But after March 31, 2023, the PAN of these taxpayers will become inactive. As per the data, 43.34 crore PANs have been linked with Aadhaar till January 24, 2022.
So far 131 crore Aadhar cards have been issued. The linking of PAN-Aadhaar will help in eliminating ‘duplicate’ PAN and prevent tax evasion. Amit Maheshwari, Tax Partner, AKM Global, said that after the government has extended the deadline for linking PAN with Aadhaar several times, it has finally released the information on the penalty amount. The penalty amount will be Rs 500 for three months before April 1, and Rs 1,000 after that.
“Taxpayers are advised to check their income tax portal and ensure that their Aadhaar and PAN are linked,” he said. Because in some cases they do not have Aadhaar. ,
Neeraj Aggarwal, Partner, Nangia Andersen LLP said, “It is now mandatory to link Aadhaar number with PAN for completing income tax related tasks like filing Income Tax Returns.” PAN can be used to open a bank account, purchase immovable property or Used as a proof of identity. Taxpayers who do not link PAN with Aadhaar will face many challenges.
He said that once your PAN is deactivated, taxpayers will not be able to do financial transactions that require PAN. These include mutual funds etc. Also, they will be subject to tax deducted at source (TDS) at a higher rate and will have to pay a penalty under section 272B.
“The linking process is made available through SMS for those who do not have access to the Income Tax portal.