Income Tax: The Central Board of Direct Taxes (CBDT) has asked all taxpayers to link their Permanent Account Number (PAN) with their Aadhaar by June 2023. Any non-compliance would mean that the PAN would become inoperative from 1 July 2023.
Income Tax Return Update: The Central Board of Direct Taxes (CBDT) has asked all taxpayers to link their Permanent Account Number (PAN) with their Aadhaar by June 2023. Any non-compliance would mean that the PAN would become inoperative from 1 July 2023. On the other hand, once the PAN card becomes inactive, then people may have to face a lot of problems. People may also have to face many problems while filling ITR.
PAN card
The Income Tax Department announced the linking of PAN with Aadhaar after it came across cases where multiple Permanent Account Numbers (PANs) were allotted to a person or where one PAN was allotted to more than one person. In such a situation, to prevent any fraud, it is being asked to link Aadhaar and PAN together.
Many problems can come
CBDT has said that if a person fails to link his PAN with Aadhaar, then the PAN will become inactive. In such case the person would not be able to furnish, intimate or show his PAN anywhere and would be liable for all consequences under the Income Tax Act for such failure. These problems can occur if PAN is not linked to Aadhaar.
- Individual will not be able to file Income Tax Return using an inoperative PAN.
- If the PAN card becomes inoperative, tax will be deducted at the maximum rate.
Pending returns will not be processed. - Money stuck in inoperative PAN will not be refunded.
- Pending action cannot be completed in case of defective returns.
- Apart from this, people may have difficulty in doing other financial transactions with banks because PAN card is an important KYC document for these transactions.
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