As per above subject PAN card became inactive from 01-July-2023 and it will remain inactive till you link PAN with Aadhaar card. This is applicable for those who have made their PAN card till 1st July 2017. The first date of linking it was 31st March 2022, till this date we used to link Aadhaar PAN for free, after that till 30th June 2022 the fees was Rs 500, now the fee is Rs 1000 and the date of this was 30th June 2023. Later the PAN card has been deactivated and the fee has been kept at Rs 1000 only.
According to the things written above, you can link your PAN card with an Aadhaar card, the fee for which is Rs 1000, which you have to pay by going to the Income Tax website and it is paid in the same year in which we linking and its payment is done through head other receipt 500, it takes 48 hours to link it.
So, all of you are informed that if both your PAN and Aadhaar are not linked, i.e. your PAN is not linked to Aadhaar, then 20% TDS is applicable on you. It is effective from 01-07-2023 and unless you link PAN with Aadhaar, 20% TDS will be deducted from your Income. The TDS slab will be applicable to you from the day when you link it.
The Permanent Account Number (PAN) is a unique alphanumeric identifier assigned to individuals and entities in India, primarily for tax-related purposes. If a PAN becomes inoperative, it can have several consequences, impacting financial transactions, compliance, and overall financial identity. Here are some potential consequences:
1. Financial Transactions:
- Banking Transactions: A functional PAN is often required for various banking transactions, including opening a bank account, making large deposits or withdrawals, and conducting high-value transactions. Without a valid PAN, these activities may become challenging or restricted.
- Investments: PAN is mandatory for various investments such as buying and selling securities, mutual funds, and other financial instruments. An inoperative PAN can impede your ability to engage in such transactions.
- Real Estate Transactions: PAN is often required for property transactions, and its inoperability may complicate processes related to property purchase or sale.
- Loan Processing: PAN is a crucial document during loan application and processing. An inoperative PAN may affect your ability to secure loans or credit facilities.
2. Income Tax Compliance:
- Filing Income Tax Returns (ITR): PAN is mandatory for filing income tax returns. An inoperative PAN may result in non-compliance with tax regulations, leading to penalties and legal consequences.
- Tax Refunds: If you are eligible for an income tax refund, an inoperative PAN could delay or prevent the processing of refunds.
- Tax Assessment: Authorities may face challenges in assessing your tax liability and conducting audits without a valid PAN.
3. Business Transactions:
- Business Registration: PAN is essential for business entities. An inoperative PAN may affect the registration and functioning of businesses.
- Vendor and Customer Transactions: Many business-to-business transactions require PAN details. Non-compliance may hinder business relationships.
- Legal Consequences:
- Penalties: Failure to comply with PAN-related regulations may result in penalties imposed by tax authorities.
- Legal Proceedings: In extreme cases of non-compliance or fraudulent activities, legal proceedings may be initiated against individuals or entities with an inoperative PAN.
4. Credit Score Impact:
- Financial Reputation: Non-compliance and inability to fulfill financial obligations due to an inoperative PAN can negatively impact your creditworthiness and financial reputation.
- Communication and Notifications:
- Communication from Authorities: Individuals with an inoperative PAN may miss important communications and notifications from tax authorities and financial institutions.
5. Difficulty in Verification:
- Identity Verification: PAN is often used for identity verification. An inoperative PAN may cause difficulties in establishing identity in various contexts.
- Inability to Avail Government Benefits:
- Government Schemes: PAN may be linked to various government schemes and benefits. An inoperative PAN may hinder access to these benefits.
It’s important to note that the consequences of an inoperative PAN can vary based on the nature and extent of financial activities. To address issues related to an inoperative PAN, individuals or entities should promptly rectify the situation by contacting the relevant authorities, such as the Income Tax Department in India, and following the prescribed procedures for PAN reactivation or correction. Maintaining compliance with tax regulations and ensuring the validity of personal identification documents is crucial for a smooth financial experience and legal standing.
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