PAN Aadhaar Link: Taxpayers must link their Permanent Account Number to their Aadhaar by March 31, 2023. The Central Board of Direct Taxes (CBDT) has stated that any noncompliance would result in PAN being inactive on April 1, 2023. Furthermore, the Securities and Exchange Board of India (SEBI) has requested that investors link their PAN with their Aadhaar as soon as possible.
The primary rationale for linking PAN to Aadhaar is to avoid numerous permanent account numbers (PANs) being assigned to a single individual.
WHO CAN LINK PAN TO AADHAAR?
It is mandatory for all the individuals who have been allotted with PAN on July 1, 2017, to initiate an Aadhaar number so that Aadhaar and PAN can be linked easily. If not linked by March 31, 2023, it could result in PAN being inoperative.
WHO IS NOT REQUIRED TO LINK PAN WITH AADHAAR?
- Few people are required to do this.
- Individuals who are at least 80 years old.
- As defined by the Income-tax Act, a non-resident.
- A person who is not a citizen of India.
RESULT OF NOT LINKING PAN WITH AADHAAR:
Persons who do not link their PAN with their Aadhaar would face serious repercussions under the Income Tax Act. The following are examples of serious issues:
Citizens cannot submit ITR with an invalid PAN.
Returns that are pending will not be handled.
Inactive PANs will not get pending reimbursements.
They are unable to proceed with the pending tasks in the event of a faulty return, which cannot be completed while the PAN is inoperative.
If PAN is not active, citizens who file income tax returns will be subject to a higher tax rate.
It may also be difficult for the individual to do other financial transactions, such as banking transactions because PAN is a crucial need for KYC criteria for these types of transactions.
