Besides becoming inoperative, those whose Aadhaar is not linked to PAN will not get an IT refund, interest shall not be payable on such refund for the period during which PAN remains inoperative, and finally, TDS/TCS shall be deducted/collected at a higher rate, as provided in the Act.
Income Tax Department in a Tweet said: “As per IT Act,1961, it is mandatory for all PAN holders, to link their PAN with Aadhaar before 31.3.23. From 1.4.23, the unlinked PAN shall become inoperative. Please link today.”
In order to provide some more time to the taxpayers, the date for linking PAN & Aadhaar has been extended to 30th June, 2023, whereby persons can intimate their Aadhaar to the prescribed authority for PAN-Aadhaar linking without facing repercussions.
(1/2) pic.twitter.com/EE9VEamJKh— Income Tax India (@IncomeTaxIndia) March 28, 2023
PAN and Aadhaar link deadline extended
The Securities and Exchange Board of India (SEBI) has asked investors to link their PAN and Aadhaar by the said deadline or investors will not be able to initiate transactions in the financial markets like NSE and BSE.
Those whose Aadhaar is not linked to their PAN before June 30th 2023, will have to pay a penalty of Rs 1,000 to make their PAN operative again.
PAN-Aadhaar linking is not required for NRIs, individuals who are not citizens of India, and senior citizens aged above 80 years. Residents of Assam, Meghalaya and Jammu Kashmir are also not required to link their PAN and Aadhaar.
The main idea behind linking PAN and Aadhaar from the Income-tax Department of India was to address the issue of duplication. This came after the IT Department identified cases where one person had multiple PANs, or when one PAN number was allotted to multiple individuals. This resulted in inaccuracies in the tax collection process.
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