PAN Cards Not Linked With Aadhaar To Become Inoperative From April 2023, Warns Income Tax Department
The Income Tax Department has warned that Pan cards not linked with Aadhaar by March 2023 will become inoperative on April 1, 2023.
After repeated reminders and deadline extensions regarding PAN-Aadhaar linkage, the Income Tax Department has issued another warning for those who haven't done so yet.
Pan Cards Not Linked To Aadhaar To Become Inoperative From 1 April
The Income Tax Department has mentioned that those permanent account numbers (PAN) that are not linked with Aadhaar by the end of March next year (2023) will become "inoperative."
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"What is mandatory, is necessary. Don't delay, link it today!" the department said in a public advisory.
"As per the Income-tax Act, 1961, it is mandatory for all PAN holders who do not fall under the exempt category to link their PAN with Aadhaar before 31.3.2023. From 1.04.2023, the unlinked PAN shall become inoperative," it said.
As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar before 31.3.2023.
¡ª Income Tax India (@IncomeTaxIndia) December 24, 2022
From 1.04.2023, the unlinked PAN shall become inoperative.
What is mandatory, is necessary. Don¡¯t delay, link it today! pic.twitter.com/eJmWNghXW6
Also Read: Frequently (Not) Asked Questions - Why File Income Tax When My PAN Is Connected Everywhere?
Who Falls In The Exempt Category?
The 'exempt category', according to a notification issued by the Union Finance Ministry in May 2017, are those individuals residing in the states of Assam, Jammu and Kashmir and Meghalaya; a non-resident as per the Income-tax Act, 1961; of the age of 80 years or more at any time during the previous year and a person not a citizen of India, as per PTI report.
Earlier this year, a circular issued by the Central Board of Direct Taxes (CBDT) on March 30 said once a PAN becomes inoperative, an individual shall be liable for all the consequences under the I-T Act and will have to suffer a number of implications.
Consequences Of Pan Card Becoming Inoperative
A person shall not be able to file an I-T return using the inoperative PAN; pending returns will not be processed; pending refunds cannot be issued to inoperative PANs; pending proceedings, as in the case of defective returns, cannot be completed once the PAN is inoperative, and tax will be required to be deducted at a higher rate, as per the report.
"In addition to the above, the taxpayer might face difficulty at various other tasks like banks and other financial portals as PAN is one of the important KYC (know your customer) criterion for all kinds of financial transaction," as per the circular.
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For the uninitiated, the CBDT is a part of the Department of Revenue in the Ministry of Finance. It provides critical inputs for direct tax policy and planning in India, and it is also in charge of enforcing direct tax laws through the Income Tax Department.
While Aadhaar is issued by the Unique Identification Authority of India to a resident of India, PAN is a 10-digit alphanumeric number allotted by the IT Department to a person, firm, or entity.
Also Read: Income Tax Payers Cannot Enroll For Atal Pension Yojana From Oct 1
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