News Analysis India

Tag: PAN card

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  • PAN to become inoperative after March 2023 if not linked to Aadhaar

    By PTI

    NEW DELHI: The Income Tax Department on Wednesday said non-linking of PAN with Aadhaar by March 31 would attract penalty of up to Rs 1,000, but such PAN will remain functional for one more year till March 2023, for filing ITR, claiming refunds and other I-T procedures.

    The Central Board of Direct Taxes (CBDT), which is the apex decision making body on direct taxes, has 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.

    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.

    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 CBDT added.

    As per data available, till January 24, 2022, more than 43.34 crore PANs have been linked with Aadhaar.

    Over 131 crore Aadhaar cards have been issued so far.

    PAN-Aadhaar linkage would help in eliminating duplicate PAN and curbing tax evasion.

    AKM Global, Tax Partner, Amit Maheshwari said “It is advisable for taxpayers to check their income tax portal and ensure that Aadhaar and PAN are linked. NRIs may have some concerns since in some cases they do not have Aadhaar.”

    Nangia Andersen LLP Partner Neeraj Agarwala said, while PAN is used for various transactions like opening a bank account, purchase of immovable property or proof of identity, inactive PAN will trigger domino effect and individual who have not linked their Aadhaar may face multiple challenges.

    “Once your PAN becomes inactive, the person will be restricted from doing financial transactions (where quoting of PAN is mandatory like mutual funds), subjected to TDS at higher rates and penalty under section 272B,” Agarwala said.

    For those who do not have access to income tax portal, the linking process is made available through SMS also, he added.

  • Non-linking of PAN with Aadhaar by March 31 to attract penalty of Rs 500-1,000

    By PTI

    NEW DELHI: Taxpayers not linking PAN with Aadhaar by March 31 would be required to pay a penalty ranging from Rs 500 to Rs 1,000, the income tax department has said.

    The last date for linking Permanent Account Number (PAN) with biometric Aadhaar is March 31, 2022. Not adhering to the deadline will lead to PAN becoming inactive.

    In a notification, the Central Board of Direct Taxes (CBDT) said delayed intimation of Aadhaar will attract a late fee of Rs 500 in cases where it is linked within the next 3 months or by June 30, 2022.

    Thereafter, Rs 1,000 would have to be paid by taxpayers as penalty. Non-linking of PAN with Aadhaar will lead to PAN becoming inoperative after March 31, 2022. It can be reoperationalised on payment of penalty, said a CBDT notification dated March 29.

    AKM Global, Tax Partner, Amit Maheshwari said the government after extending the deadline several times for linking Aadhaar with PAN has finally come up with a late fees notification where Rs 500 penalty would be attracted for the first three months beginning April 1, 2022 and thereafter Rs 1,000.

    “Any failure may lead to PAN becoming inoperative, which deems that a person had no PAN for income-tax purposes. It is advisable for taxpayers to check their income tax portal and ensure that Aadhaar and PAN are linked. NRIs may have some concerns since in some cases they do not have Aadhaar,” Maheshwari said.

    Nangia Andersen LLP Partner Neeraj Agarwala said it is now mandatory to link the Aadhaar number with PAN to complete income tax-related tasks such as filing returns on income.

    While PAN is used for various transactions like opening a bank account, purchase of immovable property or proof of identity, inactive PAN will trigger domino effect and individual who have not linked their Aadhaar may face multiple challenges.

    “Once your PAN becomes inactive, the person will be restricted from doing financial transactions (where quoting of PAN is mandatory like mutual funds), subjected to TDS at higher rates and penalty under section 272B,” Agarwala said.

    For those who do not have access to income tax portal, the linking process is made available through SMS also, he added.

  • PAN-Aadhaar linkage deadline extended till March 2022

    By PTI

    NEW DELHI: The government on Friday extended by six months till March 2022 the deadline to link PAN with biometric ID Aadhaar.

    In a statement, the Central Board of Direct Taxes (CBDT) said to address the hardship being faced by various stakeholders on account of the COVID-19 pandemic, the timeline has been extended which will ease compliance.

    “Time limit for intimation of Aadhaar number to the Income tax Department for linking of PAN with Aadhaar has been extended from 30th September, 2021 to 31st March, 2022,” it said.

    Also, the due date for completion of penalty proceedings under the I-T Act has been extended from September 30, 2021 to March 31, 2022.

    Further, the time limit for issuance of notice and passing of order by the Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1988 has been extended to March 2022.

  • Government extends deadline for linking PAN-Aadhaar by three months till June 30

    By PTI
    NEW DELHI: The government on Wednesday extended the deadline for linking PAN with biometric Aadhaar by three months till June 30.

    The income tax department said it has received representations from taxpayers that the last date for intimating the Aadhaar number may further be extended in the wake of the on-going COVID-19 pandemic.

    “Keeping in view the difficulties faced by the taxpayers, the Central Government has issued notification today extending the last date for the intimation of Aadhaar number and linking thereof with PAN to 30th June, 2021,” the Central Board of Direct Taxes (CBDT) said in a statement.

    In June last year, the Government had extended the deadline for linking them till March 31, 2021.

    As per data available, till August last year 32.71 crore PANs were linked to the biometric ID.

    The total PAN allotment as on June 29, 2020, stood at 50.95 crore.

    The government has already made quoting of Aadhaar mandatory for filing income tax returns (ITRs) as well as obtaining a new Permanent Account Number ( PAN).