Follow Us :

Please be informed that the IT department has made it mandatory for all PAN holders (except those who fall under the exempt category) to link their PAN-Aadhar by 30th June 2023. Therefore, from July 1st, as per the Income Tax Department’s official guidelines, all PAN cards that were not linked to Aadhaar became inoperative. Additionally, people who hold such PAN cards will also not be able to avail of certain services where quoting the PAN is mandatory. In other words, one cannot present the inoperative PAN anywhere when required; that means quoting that inoperative PAN will be considered a crime.

Therefore, in all types of financial transactions, whether with the bank or with others, one will face many difficulties because PAN is one of the important Know Your Customer (KYC) tools. For example, one cannot open a bank account, a Demat account, get credit/debit cards, process income tax refunds, as well as buy/sell shares of those companies which are not listed on a recognized Stock Exchange.

In addition to the above, due to the inoperative Permanent Account Number (PAN), Tax Deducted at Source (TDS) / TCS (Tax Collected at Source) will be deducted/deposited at a higher rate. Additionally, due to the inoperative Permanent Account Number (PAN), proceedings pending in the Income Tax Department cannot be completed, particularly in the case of defective returns, though the IT department allows one to file their IT return.

Why PAN-Aadhaar linking is beneficial

Hence, considering all the above facts, I am suggesting that those who have recently acquired a Permanent Account Number (PAN) without Aadhaar as one of the proof of identity should immediately link their PAN with Aadhaar. They can do so by visiting a PAN card center, filling out the appropriate form, and submitting it with photocopies of PAN and Aadhaar cards for PAN-Aadhaar linking. And for those who, for any reason, have not yet linked their PAN-Aadhaar, they are required to pay the prescribed penalty first and then should initiate the linking process properly.

Conclusion: As the deadline for PAN-Aadhaar linking already expired on 30th June 2023, hence please understand its significance. Non-compliance leads to inoperative PAN cards and difficulties in financial transactions. To  ensure seamless transactions, individuals must promptly link their PAN with Aadhaar as per the Income Tax Department’s guidelines.

Goverdhan Das Binani ‘Raja Babu’ | Bikaner / Mumbai | 7976870397

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
April 2024