The Central Board of Direct Taxes (CBDT) on Wednesday said that if a taxpayer does not link his Permanent Account Number (PAN) with Aadhaar by FY 2023, his PAN card will become inoperative or inoperative after March 31, 2023. . The CBDT also said that those who have not yet linked their PAN with Aadhaar, they should get it linked immediately by tomorrow i.e. Thursday, March 31. Otherwise, after this date, they will have to pay a fine of 500 to 1,000 rupees for linking PAN with Aadhaar.
What did CBDT say?
CBDT said that the last date for linking PAN with Aadhaar is March 31, 2022. After this, linking Aadhaar with PAN will have to pay a penalty. CBDT said that from April 1, 2022, linking of PAN with Aadhaar will attract a fine of Rs 500, which will be till June 30, 2022. After this, taxpayers will have to pay a fine of Rs 1,000 and this will be till March 31, 2023. The CBDT said that the PAN numbers which are not linked with Aadhaar after March 31, 2023, will be deactivated.
What is the point of deactivating PAN number?
Due to deactivation of PAN number, taxpayers will not be able to file income tax return using that number, neither get income tax refund nor will be able to use it for other income tax related work.
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43.34 crore PANs have been linked with Aadhaar
As per the data, 43.34 crore PANs have been linked with Aadhaar till January 24, 2022. So far 131 crore Aadhar cards have been issued. PAN-Aadhaar linking will help eliminate ‘duplicate’ PAN and prevent tax evasion.
Amit Maheshwari, Tax Partner, AKM Global, said that the government has extended the deadline for linking PAN with Aadhaar several times and now it has finally decided to impose a penalty. The penalty amount will be Rs 500 for three months before April 1, and Rs 1,000 after that.
PAN is also used here
PAN can also be used to open a bank account, purchase properties or as an identity card. Taxpayers who have not linked PAN with Aadhaar will have to face many challenges. Experts said that once your PAN is deactivated, taxpayers will not be able to do financial transactions that require PAN. These also include mutual funds etc.
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