Introduction
The majority of people are conscious that they must pay the government the proper tax on whatever income they make over a certain threshold each year. The Income Tax Department has repeatedly reminded people that they must submit their ITRs before the deadline. Likewise, one must link their pan with an aadhaar to avoid any sort of penalty.
Recent Update
According to a press release issued on Tuesday by the Ministry of Finance, the government has extended the deadline for linking the Permanent Account Number (PAN) with Aadhaar to June 30, 2023.
The government has extended the deadline to link Permanent Account Number (PAN) with Aadhaar to June 30, 2023, the Ministry of Finance announced in a release on Tuesday. Previously, the deadline to link PAN with Aadhaar was March 31, 2023.
After several extensions, the government announced June 30, 2023, as the final date to link PAN with Aadhaar. Previously, the deadline to link PAN with Aadhaar was March 31, 2023.
Taxpayers who fail to provide their Aadhaar as required will lose access to their PAN on July 1, 2023. However, the ministry stated that the PAN can be reinstated in 30 days upon notification of the Aadhaar to the appropriate authority and payment of a fee of Rs 1,000.
The Finance Ministry claims that the following individuals will lose access to their PAN: will not receive any refunds based on these PANs; For as long as the PAN is inactive, no interest will be charged on this refund; According to the Act, TDS and TCS will be collected at a higher rate.
The Ministry of Finance stated that more than 51 million PANs had already been linked to Aadhaar as of March 28.
What is the reason for linking PAN with Aadhaar?
The PAN card will no longer be valid if both identification cards, Aadhaar and Permanent Account Numbers, are not linked before 30 June 2023. By March of this year, PAN holders must link their accounts with Aadhaar to avoid having their PANs become "inoperative," according to the Income Tax Department.
If Aadhaar and PAN cards are not linked by 30 June 2023, people will be unable to access PAN-related services or file income tax returns.
When the PAN stops working, the person will no longer be able to complete several financial transactions, including opening a bank account, investing in stocks, mutual funds, etc., or going anywhere that requires the PAN to be quoted, such as when getting a lower tax deduction on your salary or interest income.
According to tax professionals, if the PAN expires and needs to be quoted or provided someplace, it will be considered that the PAN has not been furnished or quoted, and the individual may be penalized under the Income-tax Act, 1961. A fine of Rs 10,000 may be assessed under section 272B if the PAN cannot be quoted or provided.
When the deadline has passed, a person can still link their PAN and Aadhaar by paying a fine. Under section 234H of the Income-tax Act, a penalty shall be assessed. The highest fee for integrating PAN into Aadhaar just after the due deadline has passed would not exceed Rs 1,000, even though the government has not yet announced the penalty amount.
How to link PAN with Aadhaar?
How to use SMS to link Aadhaar and PAN cards:
Write a message in the UIDPAN format, which is as follows: UIDPAN (space), 12-digit Aadhaar number (space), 10-digit PAN number.
The SMS must only be sent to the numbers 567678 or 56161 from your registered phone number.
You will receive an SMS confirming the linkage of your PAN card and Aadhaar.
How to online link your PAN card and Aadhaar card:
Visit the Income Tax Department of India's official websites, eportal.incometax.gov.in or incometaxindiaefiling.gov.in.
Get registered if you haven't already.
Your PAN card number or Aadhaar number would be assigned as your user ID.
To log into the portal, enter your user ID, password, and birthdate.
A pop-up message mentioning the linkage of PAN with Aadhaar will appear on your screen.
Check the "Quick Links" section on the left side of the site if the notification isn't there.
On the home page, click the "Link Aadhaar" option.
Enter your PAN, Aadhaar, and name as they appear on your Aadhar card.
If true, select the "I have just year of birth in my Aadhaar card" checkbox.
To validate, enter the Captcha code that appears on your screen.
You will receive a confirmation notification that your PAN and Aadhaar records have been successfully linked once all the information you entered matches.
Your PAN card and Aadhaar card will be successfully linked.
Note: You must update your Aadhaar information to match your PAN records if the information on your PAN card and Aadhaar card does not match.
Aadhaar link status check
If you wish to verify your status after completing the connection process, go to the same portal at www.incometax.gov.in. Do the following actions now:
Choose the "Aadhar Link Status" menu item, which is next to "Connect Aadhar."
Insert both your Aadhar and PAN card numbers.
Choose "View Link Status." You can now quickly check the status of the PAN-Aadhaar number link.
What will happen if PAN is not linked with Aadhaar?
According to CBDT, a person's PAN will stop working if they don't link it to their Aadhaar. The individual will be subject to all of the Income-tax Act's penalties for failing to provide, divulge, or quote their PAN in this situation. Non-compliance has several serious consequences, including:
The individual is not permitted to file an income tax return using an invalid PAN.
Processing of pending returns is suspended.
Inactive PANs cannot receive pending reimbursements.
After the PAN is inactive, ongoing proceedings, such as those involving defective returns, cannot be finished.
If PAN is rendered inoperative, the tax will need to be withheld at a higher rate.
In addition to these negative effects, the person can encounter challenges while conducting other financial transactions, such as those with banks, because PAN is a crucial KYC requirement for these transactions.
Conclusion
The PAN Aadhaar linking deadline has been extended to June 30, 2023. By this date, all PAN cardholders must link their PAN card to their Aadhaar card. By going to the income tax e-filing website and selecting the "Link Aadhaar" option, you will be able to view the status of the linking of your PAN and Aadhaar.
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