The deadline for linking Aadhaar with PAN has been extended to 30 June 2023. Non-compliance on this will result in the PAN will become inoperative from April 1, 2023. Also, individuals will have to pay a fine of Rs 1000 as a late fee for linking their PAN with their Aadhaar.
PAN card is accepted as valid identity proof all over India. A PAN card is required for most financial transactions, and the IT department tracks your transaction via it. On the other hand Aadhaar holds all the information of an individual along with their biometric verification.
- Filing an Income Tax Return (ITR) may become challenging if the PAN and Aadhaar cards are not linked.
- Pending Refunds will not be issued, and Pending ITRs will not be processed with inoperative PAN.
- Income Tax will be deducted at a higher rate if PAN becomes invalid due to non-linking.
- Pending proceedings, as in the case of Defective Returns, cannot be completed with an inoperative PAN.
- Suppose the PAN Card and the Aadhaar Card are not linked. In that case, it may cause difficulties when accessing certain government services such as obtaining subsidies, applying for a passport, opening a bank account, etc.
- Obtaining a new PAN Card may be difficult if not linked to the Aadhaar Card. The government has also made it mandatory to include the Aadhaar Card number when applying for a new PAN.
- If the PAN Card and the Aadhaar Card are not linked, you may be subject to a penalty of up to Rs. 10,000/-
