BEWARE! Your PAN card will become inoperative!

Here is an important update for people having both the PAN and Aadhaar card. If you have not linked your PAN with Aadhaar, do it soon to avoid your PAN from becoming inoperative. The last date to link PAN with Aadhaar is March 31, 2023. The Income Tax Department has urged all PAN holders, those who do not come under the exempt category as per the Notifications No. 37/2017, dated 11th May, 2017 and who have not linked their Aadhaar with PAN yet, to link these documents immediately.

"As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar before 31.3.2023. From 1.04.2023, the unlinked PAN shall become inoperative. What is mandatory, is necessary. Don’t delay, link it today!," the Income Tax Department tweeted.

Notably, it is mandatory to link your PAN and Aadhaar as linking these identification documents would make it possible for your income tax returns to be completed. PAN can be linked with a valid Aadhaar on www.incometax.gov.in after paying a fee of Rs. 1000. It can be known that The central government had extended the last date to link your Permanent Account Number (PAN) with Aadhaar to March 31, 2023. However, a host of penalties have been announced by the Central Board of Direct Taxes (CBDT).

The department on March 30, introduced a sub-section (2) under section 139AA directing that a fine of Rs. 500 will be levied on linking the documents till June 30, 2022 and will be increased to Rs. 1000 after that. After March 31, 2023, the PAN of taxpayers who fail to link their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN will apply to such taxpayers. The consequences include not being able to file return using the inoperative PAN; pending refunds cannot be issued to inoperative PANs, among others.