Mandatory to Link PAN with Aadhar Before 31.03.2023

Ensure compliance with the deadline to link your PAN with Aadhar before 31st March 2023 to avoid consequences like inoperative PAN, inability to file returns, and higher TDS rates.

Income Tax Department is sending mails and messages to taxpayers regarding linking of PAN with Aadhar. It is mandatory to link PAN with Aadhar upto 31/03/2023 otherwise PAN shall become invalid. The screenshot of messages/emails received by taxpayers is-

“WHAT IS MANDATORY IS NECESSARY

IT IS NOTICED THAT YOUR PAN IS REGISTERED AT E-FILING, HOWEVER IT IS NOT LINKED WITH AADHAAR.

All PAN holders, who do not come under the exempt category as per Notification No. 37/2017, dated 11th May, 2017 and have not linked their PAN with Aadhaar yet, are requested to do so immediately.

Failure to do so will lead to the unlinked PAN becoming inoperative

Don’t delay, link it today! Last Date 31/03/2023

PAN can be linked with a valid Aadhar on www.incometax.gov.in after paying a fee of Rs.1000/-.”

The Screen shot of email received is-

WHY DEPARTMENT IS SENDING THIS MESSAGE/MAIL?

Aadhar is the identity of person residing in India. There are many instances where taxpayers are making two different PAN Cards of same person and filing returns in declaring income in two PAN Cards though the person is one. Through this practice taxpayers were declaring income in two returns and making loses to Government. To avoid this practice, Government has made mandatory to link PAN with Aadhar so that this practice can be stopped and the last date to link PAN with Aadhar is 31.03.2023.

HOW MUCH FEE IS REQUIRED TO BE PAID TO LINK PAN WITH AADHAR?

The campaign of Linking PAN with Aadhar is run by CBDT from last 4-5 years. You can link PAN with Aadhar upto 31.03.2023 by paying fee of Rs.1000. If you do not link it upto 31.03.2023, the PAN shall become inoperative.

WHAT ARE THE CONSEQUENCES OF NOT LINKING PAN WITH AADHAR

There are many adverse consequences of not linking PAN with Aadhar. It is as adverse that you may not be able to run your business.  However some adverse consequences are cited below-

1. PAN shall become inoperative

2. You will not be able to file returns

3. You will not get Pending refunds

4. You cannot open bank accounts

5. TDS will be deducted at higher rates

WHO ARE NOT REQUIRED TO LINK PAN WITH AADHAR

1. Senior Citizens whose age is 80years or more

2. Non-Resident person

3. Not Citizen of India

4. Resident of Assam, Jammu Kashmir and Meghalaya

OUR COMMENTS

Not only linking of PAN with Aadhar is mandatory but it is also necessary to link Aadhar with GSTN. SEBI has also made mandatory for its investors to link PAN with Aadhar upto 31.03.2023 for continual and smooth processing of transactions. Banks also cannot do KYC of its customers with inoperative PAN. It is therefore requested to get your Aadhar linked with PAN. This step is taken by Government to avoid practice of dual PAN and track major transactions with Aadhar and PAN so that tax evasion can be reduced. Financial Tree Company helps in linking PAN with Aadhar and other supporting services.

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Disclaimer: The above comments do not constitute professional advice. The Author can be reached at [email protected]. My name is CA Divya Agrawal and I am Practising Chartered Accountant, CEO and Founder of FINANCIAL TREE COMPANY (An online return filing and Tax Consultancy Company). We also upload educational videos in You tube and name of our channel is FINANCIAL TREE COMPANY. Our aim is to help people in improving their financial health by spreading knowledge and love. Stay Financially Fit and Healthy.