Tareekh pe tareekh, tareekh pe tareekh, tareekh pe tareekh milti gayi, par woh notification nahi aaya” !!

And finally there comes a notification which states the “Manner of making PAN inoperative”. This assures the fact that after multiple extensions of due date for linking PAN and Aadhar, finally the due date coming up i.e. 31st of March 2020 will not get further extended.

CBDT vide Notification No 11/2020 dated 13.02.2020 speaks out the following 3 things in respect of PAN becoming inoperative if not Linked with Aadhar by the 31st of March, 2020 –

(1) Where a person, who has been allotted PAN as on 01st July, 2017 and has failed to link the same with Aadhar on or before 31st March, 2020, the PAN of such person shall become inoperative immediately after the said date for the purposes of furnishing, intimating or quoting under the Income-tax Act.

(2) Where a person, whose PAN has become inoperative under sub-rule (1), is required to furnish, intimate or quote his PAN under the Act, it shall be deemed that he has not furnished, intimated or quoted the PAN, as the case may be, in accordance with the provisions of the Act, and he shall be liable for all the consequences under the Act for not furnishing, intimating or quoting the PAN.

This means that even on quoting your PAN at the various places wherever required as per the Income tax rules and provisions, it will be deemed that the person has not furnished the PAN and thus will lead to serious consequences.

For eg; For TDS deduction, PAN is required to be provided mandatorily. So even if one furnishes the PAN to his employer/vendor, but the same is not linked to Aadhar, it will be deemed that the PAN has not been furnished by the person. This will result in deduction of TDS at a higher percentage of 20%!!

(3) However, as soon as the person links his PAN with Aadhar after 31st March, 2020 i.e. post being inoperative, the PAN will become operative from the date of linking it with Aadhar, for intimating or quoting under the Act and provisions of sub-rule (2) shall not be applicable from such date of intimation.

The government in its Budget 2017 has made a law by inserting section 139AA in Income-tax Act, 1961 making it mandatory for every individual who has a PAN to link it with Aadhar with a few exceptions as listed below.

As notified by the CBDT, the following category of individuals are exempted from the purview of mandatory linking of PAN & Aadhar:

1. Those categorized as NRI as per Income tax laws

2. Not a citizen of India

3. If age is 80 years or more

4. Residents of the States of Assam, Meghalaya and Jammu and Kashmir.

The Apex court has also allowed linking of PAN with Aadhar while reading out its verdict on the constitutional validity of Aadhar. Also Aadhar has been made mandatory for ITR Filing from FY 18-19 onwards.

Thus, I have shared below the link for your perusal both for linking Aadhar and also to check status of PAN-Aadhar Link if you feel you have already linked.

Link Aadhar : https://lnkd.in/fzyzs36

Do read, like and share the post so that no one misses this important due date…

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Qualification: Student - CA/CS/CMA
Company: CVK & Associates
Location: KALYAN, Maharashtra, IN
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I have completed my 3 years of Articleship at CVK & Associates under the able guidance of CA Amit Dhavale & CA Himanshu Joshi. I have gained varied exposure in Taxation and Audit ranging from Individuals to Private Ltd Companies dealing in various facets of business dimensions such as Man View Full Profile

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  1. ankit3210 says:

    Dear Readers,

    Kindly note an extension comes up in the said compliance due to the Corona outbreak. So, the Aadhaar-PAN Linking date extended further to 30th June 2020.

  2. mahadev.mulgir@gmail.com says:

    Hi Ankit Sir,

    We have two Australian citizen working with us. They are a resident now as per 180 days rule and have PAN as well. Since they are not a citizen of India they are exempted from PAN aadhar linking. Right ? Please confirm.

  3. ASHOK KUMAR B says:

    Sec 80G How to ensure the DONEE issues a statement of Donations received. Should it contain details of ALL donations Who will receive the statement. Donor or Income tax Dept

    1. ankit3210 says:

      In the present scenario since the advent of 80G many decades ago, the Donor was allowed to claim the deduction on his own. Currently, a taxpayer is required to fill the complete details of the donee in the income tax return for availing deduction.
      In order to ease the process of claiming deduction for donation, it is proposed in Finance Bill 2020 to pre-fill the donee’s information in taxpayer’s return on the basis of information of donations furnished by the donee. This would result in hassle-free claim of deduction for
      the donation made by the taxpayer. Further, in order to claim the tax exemption, the charity institutions have to be registered with the Income Tax
      Department. In the past, the process of the registration was completely manual and scattered all over the country.
      These amendments will take effect from 1st June, 2020. The Donee will be required to file a statement of donation to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars. However, if a particular trust or find fails to do so, the Donor will not be able to claim the deduction.

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October 2020