The Central Board of Direct Taxes (CBDT) has extended the deadline for linking Aadhaar and PAN to provide taxpayers with more time to complete the process. As per the Income-tax Act, 1961, it is mandatory for all PAN holders, excluding those falling under the exempt category, to link their PAN with Aadhaar on or before June 30, 2023. The Income Tax Department has urged PAN holders to link their PAN and Aadhaar without delay.
Under income tax rules, individuals are not permitted to obtain more than one PAN. If an individual is found to possess multiple PANs, they may face a penalty of ₹10,000. Therefore, it is crucial for individuals to link their Aadhaar and PAN to ensure compliance with tax regulations.
Section 139AA of the Income Tax Act stipulates that individuals who were assigned a PAN on or before July 1, 2017, and are eligible to obtain an Aadhaar number, must intimate their Aadhaar number using the prescribed form and method. In simpler terms, individuals meeting these criteria must mandatorily link their Aadhaar and PAN by June 30, 2023, along with the payment of the prescribed fee.
Failure to link Aadhaar with PAN can result in several consequences. Firstly, the PAN will become inoperative, which can cause difficulties in conducting financial transactions and filing tax returns. Additionally, pending tax refunds and the associated interest on such refunds will not be issued until the Aadhaar-PAN linking is completed. Furthermore, tax deduction at source (TDS) will be required to be deducted at a higher rate, and tax collected at source (TCS) will be required to be collected at a higher rate.
To facilitate the linking process, the Income Tax Department has provided steps for PAN-Aadhaar linking. Individuals can visit the official website of the Income Tax Department (https://www.incometax.gov.in/iec/foportal) and log in to their account. In the Profile Section of the Dashboard, they can find the “Link Aadhar to PAN” option and click on it to proceed with the linking process.
In conclusion, it is crucial for PAN holders who meet the eligibility criteria to link their PAN with Aadhaar on or before June 30, 2023, to ensure compliance with the Income-tax Act. Failure to do so can result in penalties, an inoperative PAN, delayed tax refunds, and higher rates of TDS and TCS. By following the steps provided by the Income Tax Department, individuals can easily complete the Aadhaar-PAN linking process and avoid any associated consequences.
