Government Extends Deadline to Link PAN with Aadhaar till June 30th, 2023
As per provisions of the Income Tax Act 1961 (“ITA”), every person holding a Permanent Account Number (“PAN”) on 1st July 2017 shall link their Aadhaar with PAN on or before 31st March 2023 upon payment of a prescribed fee.
In order to provide more time to the taxpayers, the date for linking PAN and Aadhaar has been extended to 30th June 2023.
From 1st July 2023, the PAN of taxpayers who have failed to intimate their Aadhaar shall become inoperative, and the following consequences during the period that PAN remains inoperative will arise:
- No refund shall be made against such PANs;
- Interest shall not be payable on such refund for the period during which PAN remains inoperative; and
- TDS and TCS shall be deducted /collected at a higher rate, as provided in the ITA.
A fee of one thousand rupees will continue to apply to make the PAN operative by intimating the Aadhaar number.
Further, PAN-Aadhaar linking is not required in cases where persons:
- Residing in the specified States;
- A non-resident as per the ITA;
- Of the age of eighty years or more at any time during the previous year; or
not a citizen of India.
Additional Resources:
- CBDT Extends Due Date for Filing of It Returns
- Government Increased Limit for Tax Exemption on Leave Encashment
- Introduction of a modified return of Income in ITR and extension of filling out the ITR
- Supreme Court and CBDT on Reassessment Notices Under Section
Article contributed by Mandeep Singh, Senior Executive – Direct Tax, MBG Corporate Services