The Central Board of Direct Taxes (CBDT)has extended the deadline to link PAN and Aadhaar to 30 June 2023 from the earlier deadline of 31 March 2023. This is the fifth time the deadline has been extended in order to give people additional time to link their Aadhar and PAN.
Does everyone need to link their Aadhar and PAN?
As per CBDT, “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,”
“Failure to do so shall attract certain repercussions under the Act w.e.f. 1st April 2023.” it added.
Aadhar linking is not mandatory for the following groups of people:
1) Residents of the states of Assam, Jammu and Kashmir, and Meghalaya.
2) Non-resident Indians (NRIs) as per the Income-tax Act, 1961.
3) Anyone who was of the age 80 years or more at any time during the previous year.
4) Individuals who are not a citizen of India.
Why should you link your Aadhar and PAN?
Linking your Aadhar and PAN has been made mandatory by the IT departemnt for everyone because of three main reasons:
- Failure to link them means that no income tax refunds will be made against such PANs.
- Interest shall not be paid on refund for the period during which the PAN remains inoperative.
- Also, tax deducted at source (TDS) and Tax collection at source (TCS) will be deducted at a higher rate. The PAN can be made operative again upon the initiation of Aadhaar to the prescribed authority after paying a fee of ₹1,000.
Steps to link Aadhar-PAN card online
- Go to the Income Tax e-filing portal (https://www.incometax.gov.in/iec/foportal/ ) and register yourself
- On the homepage, select Quick Links, then Link Aadhaar Status
- Now you will see two fields where the taxpayer needs to enter PAN and Aadhaar numbers
- Following this, a pop-up message will be displayed.
- If Aadhaar and PAN are linked, the message will say – Your PAN is already linked to given Aadhaar
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