Linking of PAN and Aadhaar is Mandatory. Do it by 31st March 2023
In March 2022, the Central Board of Direct Taxes (CBDT) issued a circular stating that any PAN that is not linked with Aadhaar by March 31, 2023, will become inoperative, and the person will be liable to all the consequences under the Income-tax Act, 1961, for not furnishing, intimating, or quoting the PAN.
Failure to link these could result in serious consequences for taxpayers.
The primary consequence of not linking PAN with Aadhaar is that the PAN will become inoperative, making it impossible for individuals to file their income tax returns (ITRs) and causing pending returns to remain unprocessed. Additionally, pending refunds cannot be issued, and pending proceedings, such as those related to defective returns, cannot be completed. Finally, tax will be deducted at a higher rate, which could result in financial losses for taxpayers.
To avoid these consequences, taxpayers are urged to check if their PAN is linked with Aadhaar by visiting the PAN Aadhaar Linking Check website. If their PAN is not currently linked with Aadhaar, it is crucial that they get it linked as soon as possible. This will ensure that they can continue to file their ITRs and avoid any penalties or other negative consequences related to their tax filings.
It is also important to note that if your parents are also PAN and Aadhaar holders, you should ensure that their PAN is linked with Aadhaar as well. By taking these steps, you can ensure that your tax filings are in order and that you are not subject to any penalties or other negative consequences.
However, failure to link your PAN with Aadhaar before the deadline could have serious consequences. Here are some of the key implications:
To avoid these consequences, it is important to check if your PAN is already linked with Aadhaar.
Hence check if your PAN is linked with Aadhar on the following website PAN Aadhaar Linking Check website
If not kindly get it linked as soon as possible.
PAN is a crucial piece of information required while transacting through banks, security markets, and other financial institutions. Failure to link PAN with Aadhaar will have severe repercussions, and investors must take the necessary steps to ensure compliance with the CBDT circular.
The Securities and Exchange Board of India (SEBI) has emphasized the importance of linking the Permanent Account Number (PAN) with the Aadhaar number.
All existing investors must link their PAN with Aadhaar number before March 31, 2023, to avoid any disruptions in their transactions in the securities market and the consequences of non-compliance with the said CBDT circular. SEBI urges investors to take immediate action to avoid any inconvenience and ensure smooth transactions in the securities market.