Taxpayers who have not linked their PAN with Aadhaar can continue to carry out various procedures under the Income Tax Act such as furnishing of returns and processing of refunds till March 31, 2023, the I-T department said on Wednesday. It also gave a window to people to link the two documents by paying a fee of
500-1,000 by March 31, 2023. After March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, would become inoperative and “all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers”, the tax department said. Under the provisions of the I-T Act, 1961, every person who has been allotted a PAN as on July 1, 2017 and is eligible to obtain Aadhaar number, is required to intimate his Aadhaar to the prescribed authority on or before March 31, 2022. To mitigate the inconvenience to the taxpayers, a window of opportunity has been provided to the taxpayers up to March 31, 2023 to intimate their Aadhaar to the prescribed authority for PAN linking without facing repercussions, it said. However, taxpayers will be required to pay a fee of500 up to three months from April 1, 2022, and a fee of Rs 1,000 after that, while intimating their Aadhaar.
“Once your PAN becomes inactive, the person will be restricted from doing financial transactions (where quoting of PAN is mandatory like mutual funds), subjected to TDS at higher rates and penalty under section 272B,” said Neeraj Agarwala, Partner, Nangia Andersen LLP.