Aadhaar-PAN Linking: What Happens If Aadhaar Card Is Not Linked With PAN After Last Date March 31

Aadhaar-PAN Linking Last Date March 31, 2023: If the Aadhaar is linked with PAN, the government can verify the identity of taxpayers, prevent tax evasion, and ensure compliance with tax laws.

Aadhaar-PAN Linking Last Date March 31, 2023: To streamline the financial transactions and prevent tax evasion, the Central Board of Direct Taxes (CBDT) has asked taxpayers to link PAN with Aadhaar before March 31, 2023. The individuals must note that If Aadhaar is not linked with PAN within the deadline, then PAN card will become inoperative to initiate all financial transactions. The Securities and Exchange Board of India (SEBI) has in this regard also issued a notification saying individuals will not be able to initiate any transactions in financial markets like NSE and BSE if their Aadhaar is not linked with PAN within the deadline.

Why Linking PAN with Aadhaar is Mandatory?

The Income-tax Department of India said it is mandatory to link Aadhaar with PAN to address the issue of duplication of PANs. The announcement was made after the IT Department identified cases where one person had multiple PANs, or where one PAN number was allotted to multiple individuals.

If the Aadhaar is linked with PAN, the government can verify the identity of taxpayers, prevent tax evasion, and ensure compliance with tax laws.

Who is exempted from linking Aadhaar with PAN

While it is mandatory for all Indian citizens, there are some categories of individuals who are exempted from the Aadhaar-PAN linking. There are some categories of individuals for whom this linkage is not compulsory.

Citizens who are above 80 years of age and non-residents as per the Income-tax Act and people who are not citizens of India but living in the country are exempted from the Aadhaar-PAN linking.

Aadhaar-PAN Linking Deadline

The deadline to link Aadhaar with PAN for free was March 31, 2022. The taxpayers will now have to pay Rs 1,000 as fine to link Aadhaar with PAN by March 31, 2023.

What happens if Aadhaar is not linked with PAN after March 31

According to CBDT, it is mandatory to link Aadhaar with PAN, and failure to do so will render PAN inoperative. After the PAN becomes inoperative, the person will now be able to file income tax returns, process pending returns or issue refunds.

Apart from this, pending proceedings, such as defective returns, cannot be completed once the PAN is inoperative.

Here’s How to link Aadhaar with PAN

• Visit the Income Tax e-Filing portal- incometaxindiaefiling.gov.in.
• Click on the ‘Link Aadhaar’ option.
• Enter your PAN, Aadhaar number, and name as per Aadhaar in the relevant fields.
• Verify the details and submit.
• Upon successful linking, a confirmation message will be displayed on the screen, and an OTP will be sent to your registered mobile number.