PAN-Aadhaar Linking
Your PAN has not become inactive yet but still not linking your PAN-Aadhaar together will cost you way more than you think. Even the final deadline has been increased by the Government now, and still not following the guidelines will attract a heavy penalty. Eventually, your PAN can become inactive if not linked within the last date of March 31, 2023. And with that, you will be barred from getting major Government services.
Why Is the Government Focusing So Much On PAN-Aadhaar Linking?
The government is pushing out intense notifications for the people to interlink their PAN-Aadhaar. This is because of a simple reason but the story of why it happened will be complex. It is noticed by the Income Tax Department that multiple permanent account numbers (PAN) have been issued to one person or multiple people have been allotted one PAN.
Last week the Finance Ministry stated, “Till March 31, 2023, the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds, etc.”
Government Services That Will Stop If Linking Process Not Done
The Finance Ministry made a statement on March 30, “After March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act (Income Tax Act, 1961) for not furnishing, intimating or quoting the PAN shall apply to such taxpayers.”
The Central Board of Direct Taxes (CBDT) issued a circular that said, “Rule 114AAA of the Income Tax Rules provides that if PAN of a person has become inoperative, he will not be able to furnish, intimate or quote his PAN and shall be liable to all the consequences under the Act for such failure.”
Services from which a person will be barred if PAN-Aadhaar is not linked are:
- People will not be able to file returns using inactive PAN.
- Processing of pending returns will not advance.
- If PAN becomes inactive then-pending refunds will not be issued.
- If returns are defective then pending proceedings cannot be completed.
- Tax will be dedicated at a higher rate.
Also read:
7 Major Changes In Income Tax Rules In effect From April 1
Penalty Applicable For Not Linking PAN-Aadhaar
As per the official notification released on March 30, “Every person who, in accordance with the provisions of sub-section (2) of section 139AA, is required to intimate his Aadhaar number to the prescribed authority in the prescribed form and manner, fails to do so by the date referred to in the said sub-section, shall, at the time of subsequent intimation of his Aadhaar number to the prescribed authority, be liable to pay, by way of fee, an amount equal to, — (a) five hundred rupees, in a case where such intimation is made within three months from the date referred to in sub-section (2) of section 139AA; and (b) one thousand rupees, in all other cases.”
