Last updated: February 05, 2023 3:23 PM IST
A fee of Rs 1,000 will be charged for those who wish to link their PAN and Aadhaar between now and March 31st.
The government has announced that those individual PANs not attached to Aadhaar by the end of this fiscal year (March 31, 2023) will be taken out of service.
Approximately 48 crore Individual Permanent Account Numbers (PANs) out of a total of 61 crore issued so far have been linked to Aadhaar to date and those who do not link before the announced March 31st deadline will not benefit from various business transactions. operations. and tax-related activities, said CBDT chairman Nitin Gupta.
The government has made linking the two databases mandatory and announced that those individual PANs not linked to Aadhaar by the end of this fiscal year (March 31, 2023) will become inactive.
A fee of Rs 1,000 will be charged for those who wish to link their PAN and Aadhaar between now and March 31st.
“About 61 crores of individual PANs have been released so far, of which about 48 crores have been seeded by Aadhaar. Right now the difference is around 13 crore including the exempt category and we hope the rest will also be tied by the end date,” Gupta told PTI in a post-budget interview.
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We’ve done a number of public campaigns and extended the deadline many times, urging taxpayers to tie the two — those categories of taxpayers that are required to do so but don’t tie them will lose tax credits because their TINs won’t be valid after March, he said.
The head of the CBDT said a budget announcement to make PAN a “general identifier” would be “beneficial” to the business sector.
Finance Minister Nirmala Sitharaman, in her budget speech on Feb. 1, said that PAN will now be a common business identity for government digital systems.
The circular issued by the CBDT on March 30 states that after the PAN becomes inactive, the individual will be liable for all consequences in accordance with the Law (IT Law) and will suffer a number of consequences, such as: return of the file due to non-working PAN; pending returns will not be processed; pending refunds cannot be issued to inactive PANs; pending proceedings, as in the case of false returns, cannot be completed if the PAN is down and tax will need to be deducted at a higher rate.
“In addition to the above, the taxpayer may encounter difficulties in various other forums, such as banks and other financial portals, since PAN is one of the important criteria for KYC (know your customer) for all types of financial transactions,” the circular says.
However, few categories of taxpayers are exempt from this link.
The “Exempt Category”, according to a notice issued by the Union Ministry of Finance in May 2017, includes persons residing in the States/Utah of Assam, Jammu and Kashmir and Meghalaya; non-resident under the Income Tax Act of 1961; aged eighty or over at any time during the previous year and a non-Indian citizen.
The Central Board of Direct Taxes (CBDT) determines the policies of the IT department.
While Aadhaar is issued by the Unique Identification Authority of India (UIDAI) to a resident of India, PAN is a 10 digit alphanumeric number assigned by the IT department to an individual, firm or organization.
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(This story was not edited by the News18 staff and is published from a news agency syndicated channel)