Government has extended the deadline for linking PAN and Aadhaar from 31st March 2023 to 30th June 2023. This move aims to provide taxpayers with more time to link their PAN and Aadhaar without facing repercussions. CBDT Notification to this effect is being issued.
The linking of PAN and Aadhaar has been made mandatory under the provisions of the Income-tax Act, 1961, for those who have been allotted a PAN on or before 1st July 2017 and are eligible to obtain an Aadhaar number.
Consequences of not linking PAN and Aadhaar
From 1st July 2023, the PAN of taxpayers who have failed to link their Aadhaar will become inoperative, and the consequences during this period will be as follows:
i) No refunds will be made against such PANs.
ii) Interest will not be payable on such refunds for the period during which PAN remains inoperative.
iii) TDS and TCS will be deducted/collected at a higher rate, as provided in the Act.
It is essential to note that the PAN can be made operative again in 30 days upon intimation of Aadhaar to the prescribed authority after payment of a fee of Rs 1,000/-.
Exemptions from linking PAN and Aadhaar
There are certain exemptions from linking PAN and Aadhaar, including residents of specified states, non-residents as per the Act, individuals who are not citizens of India, and individuals aged 80 or above at any time during the previous year.
Linking PAN and Aadhaar
It is easy to link PAN and Aadhaar by accessing the link provided on the Income Tax Department’s website. Over 51 crore PANs have already been linked with Aadhaar to date.
In conclusion, the Government has extended the deadline for linking PAN and Aadhaar up to 30th June 2023. Taxpayers who are unable to link their PAN and Aadhaar by this new deadline will face repercussions under the Income-tax Act, such as an inoperative PAN, no refunds, no interest on refunds, and higher TDS/TCS rates. However, there are exemptions available for certain individuals. The linking process is straightforward and can be done easily online.