PAN-Aadhaar Linking: The last date to link PAN-Aadhaar has already passed last month, and those who have not done the job will have to face certain consequences. However, it would not mean that your PAN will be rendered inoperative, the Central Board of Direct Taxes, or CBDT, has said in its latest circular. The board, which fixes income tax-related rules, has said that those who have not linked Aadhaar-PAN can do it by paying a fine of up to Rs 1,000 until next year.
The CBDT has extended the deadline to link PAN-Aadhaar to March 31, 2023, but such people who are yet to link will have to pay a fine. A penalty of Rs 500 is to be paid “in a case where such intimation is made within three months from the date referred to in sub-section,” that is by June 30, 2022. Beyond that, one has to pay a fine of Rs 1,000 to link Aadhaar-PAN.
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“Hence, in order to have the smooth application of section 234H and existing rule 114AAA, it is clarified that the impact of sub-rule (2) of rule 114AAA i.e. where a person. whose permanent account number has become inoperative under sub-rule (1), is required to furnish, intimate or quote his permanent account number under the Act, it shall be deemed that he has not furnished, intimated or quoted the permanent account number, as the case may be, in accordance with the provisions of the Act, and he shall be liable for all the consequences under the Act for not furnishing, intimating or quoting the permanent account number, shall come into effect from 1st April 2023 and the period beginning from 1st April 2022 and ending with 31st March 2023, shall be the period during which the said sub-rule shall not have its negative consequences of the nature referred to in the said sub-rule or specified in paras 4 and 4.1 above. However, the taxpayer shall be liable to pay a fee in accordance with sub-rule (5A) of rule 114,” the CBDT said in a circular dated March 30 this year.
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Accordingly, in case of failure to intimate the Aadhaar Number by the last extended notified date, that is, March 31, 2023, the PAN allotted to the person shall be made inoperative in accordance with the provisions of the Act, the CBDT added.
An inoperative PAN will lead to a number of consequences like not being able to file tax return, pending returns and refunds not being processed, tax deductions at a higher rate and many others. Further, the taxpayer might face difficulty at various other areas like banks and other financial portals, as PAN is one of the important KYC criterion for all kinds of financial transactions. Thus, PAN-Aadhaar linking is an important task
