The Ministry of Finance has announced an extension to the deadline for linking Aadhaar with PAN to June 30, 2023, giving taxpayers more time to comply with the requirement. The decision was made in response to requests from taxpayers who were facing difficulties in meeting the earlier deadline of March 31, 2023. The notification regarding the extension of the deadline is being issued separately.
Under the provisions of the Income-tax Act, every individual who has been allotted a PAN and is eligible to obtain an Aadhaar number is required to link the two by intimating their Aadhaar to the prescribed authority. Failure to do so would result in certain repercussions under the Act, which would come into effect from April 1, 2023.
However, the extension of the deadline to June 30, 2023, means that taxpayers will not face any repercussions for not linking their Aadhaar with PAN till that date. The government has also announced that from July 1, 2023, the PAN of taxpayers who have failed to link their Aadhaar as required will become inoperative. During the period that PAN remains inoperative, no refund will be made against such PANs, and interest shall not be payable on any refund for the period during which the PAN remains inoperative. Additionally, TDS and TCS will be deducted/collected at a higher rate, as provided in the Act.
Taxpayers can make their PAN operative again within 30 days by intimating their Aadhaar to the prescribed authority after payment of a fee of Rs.1,000. More information on how to link Aadhaar with PAN can be found on the official website of the Income-tax department.
This extension of the deadline is expected to provide some relief to taxpayers who were struggling to meet the earlier deadline due to various reasons such as difficulty in obtaining Aadhaar, technical glitches, etc. The government has urged all taxpayers to take advantage of this extended deadline and link their Aadhaar with PAN to avoid any future complications.
How to Link Aadhaar with PAN
In order to provide some more time to the taxpayers, the date for linking PAN & Aadhaar has been extended to 30th June, 2023, whereby persons can intimate their Aadhaar to the prescribed authority for PAN-Aadhaar linking without facing repercussions.
— Income Tax India (@IncomeTaxIndia) March 28, 2023