Aadhaar-PAN Linkage: Income Tax Department has made it mandatory to link PAN card with Aadhaar and its deadline is near. Although some people have also got exemption from this.
The Income Tax Department has made it mandatory to link PAN card with Aadhaar. Taxpayers have only time till June 30 for this. PAN card can become inactive if it is not linked to Aadhaar till the deadline. Apart from this, the taxpayer may have to bear many losses. However, there are some people who do not need to worry about all these things.
These losses after the deadline
Before proceeding further, let us tell you that under the Income Tax Act 1961, it is necessary to link PAN card with Aadhaar. There can be many losses if PAN is not linked to Aadhaar by the deadline i.e. 30 June 2023. First of all, after June 30 i.e. from July 1, a penalty of Rs 1000 will have to be paid for this. Taxpayer’s income tax refund will be withheld if PAN and Aadhaar are not linked. Another major disadvantage is that you will be charged more TCS and TDS.
Essential for those
Now let us know for whom it is necessary to link PAN with Aadhaar… Section 139AA of the Income Tax Act explains this in detail. This section says that every person who had PAN as on July 1, 2017 and is eligible to obtain an Aadhaar number, is required to link PAN with Aadhaar by the deadline i.e. June 30.
However, four categories of people are exempted from this provision. The people who are exempted from linking PAN with Aadhaar are…
- Residents of Assam, Jammu Kashmir and Meghalaya.
- Non-resident Indian ie NRI under the Income Tax Act, 1961.
- Such citizens, whose age has become 80 years in 2020.
- People who are not citizens of India.
According to the Income Tax Department, it is not mandatory for the above mentioned four categories of people to link PAN with Aadhaar. However, if they want to do so voluntarily, they can. Apart from these, it is necessary for all taxpayers to link by June 30. After that, a fine of Rs 1000 will have to be paid for linking.
This is why the link is not working
Due to the deadline coming so close, many people have started linking PAN with Aadhaar. However, the efforts of many of these are failing. Taking cognizance of the problem being faced by such tax payers, the Income Tax Department has told why their efforts are failing and now what are the solutions they have to link Aadhaar with PAN.
