PAN Aadhaar Not Linked? After March 31, Be Ready To Face These Consequences

Spread the love

Know what will happen if you don't link Aadhaar with PAN

Know what will happen if you don’t link Aadhaar with PAN

PAN-Aadhaar Link: If PAN becomes inoperative, you will not be able to furnish, intimate or quote your PAN.

PAN-Aadhaar Link: PAN Card stands for Permanent Account Number Card. It is a unique ten-digit alphanumeric identification number issued by the Indian Income Tax Department of India to individuals, companies, and other entities. It serves as a proof of identity and is mandatory for various financial transactions in India, such as opening a bank account, investing in the stock market, and filing income tax returns. It helps in monitoring and regulating financial transactions and preventing tax evasion.

PAN Card is an essential document in India for several reasons and you will not be able to use the PAN card from April 1, 2023 if it is not linked with your Aadhaar number by March 31. After the deadline, the 10-digit unique alphanumeric number will become inoperative.

The PAN Card contains details such as the individual’s name, date of birth, and photograph, along with the PAN number. It is important to keep the PAN Card safe and secure, as it is considered a sensitive document and can be misused for identity theft or financial fraud if it falls into the wrong hands.

Linking of PAN with Aadhar Number

As per section 139AA in the Income-tax Act, 1961, it is mandatory for every person, who is eligible to obtain Aadhaar, to quote his Aadhaar number while applying for PAN or furnishing return of income with effect from July 1, 2017.

If any person does not possess the Aadhaar Number but he/she has applied for the Aadhaar card then the person can quote the Enrolment ID of Aadhaar application Form in the ITR.

Further, every person who has been allotted PAN as on the 1st day of July, 2017, and who is eligible to obtain an Aadhaar number shall intimate his Aadhaar number on or before a date to be notified to the Income-tax Department. In case of failure to intimate the Aadhaar number, PAN allotted to the person shall be made inoperative after the date so notified.

“It is mandatory. Don’t delay, link it today! As per the I-T Act, it is mandatory for all PAN-holders who do not fall under the exempt category, to link their permanent account numbers (PAN) with Aadhaar before March 31, 2023. From April 1, 2023, the unlinked PAN shall become inoperative,” a public advisory issued by the I-T Department had stated.

What Will Happen If You Don’t Link Aadhaar and PAN?

If PAN becomes inoperative, you will not be able to furnish, intimate or quote your PAN and would be liable to all the consequences for such failure.

This will have a number of implications such as:

1. You will not be able to file return using the inoperative PAN

2. Pending returns will not be processed

3. Pending refunds cannot be issued to inoperative PANs

4 Pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative

5. Tax will be required to be deducted at a higher rate as PAN becomes inoperative.

In addition to the above, the taxpayer might face difficulty at banks and other financial portals, as PAN is one of the important KYC criteria for all kinds of financial transactions.

Read all the Latest Business News here

Source link

Be the first to comment

Leave a Reply

Your email address will not be published.