New Delhi: The Central Board of Direct Taxes has extended the last date for linking the Permanent Account Number (PAN) with Aadhaar by 30 June 2023. The Pension Fund Regulatory and Development Authority has also said that if PAN and Aadhaar are not linked by the deadline, then transactions in one’s NPS account will be restricted.
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“In continuation to our earlier advisory dated March 23, 2023 on the captioned subject, the date for linking PAN with Aadhaar has been extended till June 30, 2023 in accordance with CBDT press release dated March 28, 2023,” said a PFRDA circular dated May 2, 2023:
“Since PAN is the one of the key identification number and part of Know Your Customer (KYC) requirements for NPS accounts, all concerned intermediaries are required to ensure valid KYC for all the subscribers. All existing subscribers are also required to ensure linking of their PAN with Aadhaar number prior to June 30, 2023, for continual and smooth transactions and to avoid consequences of non-compliance with the said CBDT circular, as such NPS accounts would be considered non-KYC compliant, and there could be restrictions on NPS transactions until the PAN and Aadhaar are linked,” according to the PFRDA circular dated 23 March 2023.
As of now, the CBDT has extended the deadline for PAN-Aadhaar linking five times. The last extension was done on March 28.
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What is the fine for linking PAN- Aadhaar?
The new deadline for PAN-Aadhaar linkage is 30 June 2023. If the same is done on or after 1 July 2023, a fine of Rs 1,000 will be levied on the user.
Who has to link PAN with Aadhaar?
“Under the provisions of the Income-tax Act, 1961(the ‘Act’) every person who has been allotted a PAN as of 1st July 2017 and is eligible to obtain an Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March 2023, on payment of a prescribed fee,” as per CBDT.
Failure to link
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Failure to do so shall attract certain repercussions under the Act w.e.f. 1st April 2023. The date for intimating Aadhaar to the prescribed authority for the purpose of linking PAN and Aadhaar has now been extended to 30th June 2023, CBDT added.
What Happens If You Don’t Complete PAN-Aadhaar Linkage By 30 July 2023
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- The user’s PAN will no longer be active starting 1 July 2023.
- No refund shall be made against such PANs
- Interest shall not be payable on such refund for the period during which PAN remains inoperative.
- TDS and TCS shall be deducted /collected at higher rate, as provided in the Act
- The PAN can be made operational again after 30 days after informing the appropriate authority and paying a cost of Rs.1,000.
