PAN-Aadhaar linking: The last date to link permanent account number (PAN) with the biometric Aadhaar is March 31.
As per section 139AA of the Income Tax Act, 1961, it is mandatory for all users to link PAN with their Aadhaar number, or else the former will become inoperative from March 31, 2023 . This would mean that users will not be able to conduct transactions where quoting PAN is mandatory, like mutual funds.
Earlier, the CBDT had extended the deadline for linking Permanent Account Number (PAN) with Aadhaar many times and the last date now is March 31, 2022.
As per a circular issued by CBDT on Wednesday, PAN, not linked to Aadhaar, would become “inoperative” after March 31, 2023. The CBDT further said those taxpayers who link their PAN with biometric Aadhaar by June 30, 2022, would be required to pay late fees of Rs 500. Beyond that, the penalty would rise to Rs 1,000.
In order to mitigate the inconvenience to taxpayers, as per notification dated March 29, 2022, a window of opportunity has been provided to taxpayers up to March 31, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions, the CBDT said, adding such intimation would have to be accompanied by late fees.
“However, till 31st March, 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,” the CBDT statement said.
The CBDT said 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 for not furnishing, intimating or quoting the PAN shall apply to such taxpayers.
The government data stated that till January 24, 2022, more than 43.34 crore PANs have been linked with Aadhaar and over 131 crore Aadhaar cards have been issued so far.
