New Delhi: The Central Board of Direct Taxes (CBDT), the apex decision-making body on direct taxes, had in the past extended the deadline for linking Permanent Account Number (PAN) with Aadhaar. However, there is a good and bad news related to linking PAN card with Aadhar card. According to a circular issued by the CBDT, PAN, which is not linked with Aadhaar, will become “inactive” after March 31, 2023. This means that you can still use your PAN card for one year.
Income tax department It has said that non-linking of PAN with Aadhaar by March 31 will attract a penalty of up to Rs 1,000, but such PAN will remain functional for one more year till March 2023 for filing ITR, claiming refund and other IT processes.
Now, the bad news is that those taxpayers who pan card With biometric Aadhaar by June 30, 2022, a late fee of Rs 500 has to be paid. In addition, the fine will increase to Rs 1,000.
In order to reduce the inconvenience caused to the taxpayers, vide notification dated 29th March, 2022, the taxpayers were given an opportunity to report their Aadhaar to the prescribed authority for Aadhaar-PAN linking without any repercussions by 31st March, 2023. Is. CBDT said, adding such information will be accompanied by late fee.
The CBDT statement said, “However, till March 31, 2023, the PAN of those assessees, who have not intimated their Aadhaar, will continue to function for procedures under the Act, such as refund of income, processing of refund e.t.c.”
What happens when your PAN becomes inactive?
The CBDT said that after March 31, 2023, PAN of taxpayers, who fail to inform their Aadhaar as required, will become inoperative and for non-furnishing, not intimating or quoting PAN under the Act. All consequences shall be applicable to such taxpayers.
Once your PAN is deactivated, you will be barred from doing financial transactions (where it is mandatory to mention PAN like in mutual funds), TDS at higher rates and subject to penalty under section 272B.