Responsive Menu
Add more content here...

Who needs to link Aadhaar and PAN?

Spread the love

PAN-Aadhaar linking date extended: To provide some more time to the taxpayers, the Centre on Tuesday extended the deadline to link Aadhaar with PAN.

The Ministry of Finance said the date for linking PAN and Aadhaar has been extended to June 30, 2023, whereby persons can intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. Failing which, the PAN of taxpayers will become inoperative.

Who needs to link Aadhaar and PAN?

Section 139AA of the Income Tax (IT) Act provides that every individual who has been allotted a permanent account number (PAN) as on the 1st day of July, 2017, and who is eligible to obtain an Aadhaar number, shall intimate his Aadhaar number in the prescribed form and manner.

In other words, such persons have to mandatorily link their Aadhaar and PAN before the prescribed date with prescribed fee payment.

Further, if the PAN of a person has become inoperative, s/he will not be able to furnish, intimate or quote his/her PAN and shall be liable to all the consequences:

  • The person shall not be able to file return using the inoperative PAN
  • Pending returns will not be processed
  • Pending refunds cannot be issued to inoperative PANs
  • Pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative
  • Tax will be required to be deducted at a higher rate as PAN becomes inoperative

For whom is Aadhaar-PAN linkage not compulsory?

Aadhaar-PAN linkage requirement does not apply to any individual who is:

  • Residing in the States of Assam, Jammu and Kashmir, and Meghalaya;
  • a non-resident as per the Income-tax Act, 1961;
  • of the age of eighty years or more at any time during the previous year; or
  • not a citizen of India.