Even if your PAN has not been deactivated yet, if not linked with Aadhaar number because its deadline has been extended, then not doing so by now will attract a penalty and not doing so by the new deadline of March 31 will be deactivated. , 2023. If the Permanent Account Number (PAN) becomes inactive, you will stop getting some major government services.
The issue of PAN-Aadhaar interlinking started after it came to the notice of the Income Tax Department that multiple Permanent Account Numbers (PANs) have been allotted to an individual or a PAN has been allotted to more than one person.
Last week, the Finance Ministry said, “Till March 31, 2023, the PAN of assessees who have not intimated their Aadhaar will continue to function for processes under the Act, such as furnishing of return of income, processing of refund, e.t.c.”
Services will be affected if PAN is not linked with Aadhaar by March 2023
In a statement on March 30, the Finance Ministry said, “After March 31, 2023, PAN of taxpayers, who fail to mandatorily report their Aadhaar, will become inoperative and under the Act (Income Tax Act, 1961). shall not apply to such taxpayers for not furnishing, informing or quoting PAN.”
As part of this, the CBDT issued a circular stating that “Rule 114AAA of the Income Tax Rules provides that if the PAN of a person has become inoperative, he shall not furnish, inform or quote his PAN.” and shall be liable to all consequences under the Act for such failure”. It listed out the services that would be affected if a person fails to link PAN with Aadhaar:
1) Person will not be able to file return using inactive PAN
2) Pending returns will not be processed
3) Inactive PAN cannot be issued pending refund
4) Pending proceedings in case of defective returns cannot be completed after PAN is deactivated
5) Tax deducted at higher rate will be required if PAN becomes inoperative
Penalty for not linking PAN-Aadhaar till now
The Central Board of Direct Taxes (CBDT), in a notification last week, said those who have not linked their Aadhaar and PAN numbers so far, will have to pay a fine of Rs 1,000 for making Rs 500 and above within three months. . However, even if it is not linked with Aadhaar, PAN will continue to be operational for the time being.
The notification, issued on March 30, said, “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.” shall, as on the date specified in the said sub-section, 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, such in the case where such notice is made within three months from the date referred to in sub-section (2) of section 139AA; and (b) rupees one thousand, in all other cases.”