To give taxpayers more time, Centre has prolonged the deadline for linking Permanent Account Number (PAN) and Aadhaar by three months to June 30. Previously, the ministry of finance's department of revenue issued a notification requiring people to link their Aadhaar card to their PAN online for a fee of Rs. 1000 by March 31, or their PAN will become inoperative.
"Under the provisions of the Income-tax Act, 1961(the ‘Act’) every person who has been allotted a PAN as on 1st July, 2017 and is eligible to obtain Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March, 2023, on payment of a prescribed fee. Failure to do so shall attract certain repercussions under the Act w.e.f. 1st April, 2023. The date for intimating Aadhaar to the prescribed authority for the purpose of linking PAN and Aadhaar has now been extended to 30th June, 2023," a statement from finance ministry read.
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What happens if you fail to meet PAN-Aadhaar linking deadline?
The PAN of taxpayers who have failed to link their Aadhaar as required will become inoperative on July 1, 2023. When the PAN card is inoperative:
{{/usCountry}}The PAN of taxpayers who have failed to link their Aadhaar as required will become inoperative on July 1, 2023. When the PAN card is inoperative:
{{/usCountry}}1) No refunds will be issued against such PANs.
2) No interest shall be payable on such refund during the time in which the PAN is inoperative; and
3) TDS and TCS shall be deducted/collected at a higher rate, as specified in the Act.
The PAN can be made operational again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs.1,000, the statement added.
Aadhaar-PAN linking was free before March 31, 2022. Since April 1 last year, a fee of ₹500 was imposed and was later increased to ₹1,000 from July 1.