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regular-article-logo Thursday, 23 May 2024

PAN not linked with Aadhaar by end of March 2023 to be rendered inoperative: I-T advisory

Once a PAN becomes inoperative, an individual shall be liable to all consequences under Income Tax Act: CBDT

PTI New Delhi Published 25.12.22, 01:00 AM
The CBDT frames policy for the income tax department.

The CBDT frames policy for the income tax department. File picture

The Income Tax department on Saturday issued an advisory that those permanent account numbers (PAN) which are not linked with Aadhaar by the end of March will be rendered “inoperative”.

“What is mandatory, is necessary. Don’t delay, link it today!” the department said in a public advisory.

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“According to the 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 March 31, 2023. From April 1, 2023, the unlinked PAN shall become inoperative,” it said.

The ‘exempt category’, according to a notification issued by the Union finance ministry in May 2017, are those individuals residing in the states of Assam, Jammu and Kashmir and Meghalaya; a non-resident under the Income-tax Act, 1961; of the age of 80 years or more at any time during the previous year and a person not a citizen of India.

A circular issued by the Central Board of Direct Taxes (CBDT) on March 30 said once a PAN becomes inoperative, an individual shall be liable to all the consequences under the I-T Act and will have to suffer a number of implications.

The person shall not be able to file IT return using the inoperative PAN; pending returns will not be processed; pending refunds cannot be issued to inoperative PANs; pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative and tax will be required to be deducted at a higher rate.

“In addition to the above, the taxpayer might face difficulty at various other fora like banks and other financial portals as PAN is one of the important KYC (know your customer) criterion for all kinds of financial transaction,” the circular said.

The CBDT frames policy for the income tax department.

While Aadhaar is issued by the Unique Identification Authority of India to a resident of India, PAN is a 10-digit alphanumeric number allotted by the IT department to a person, firm or entity.

Fresh KYC

The Unique Identification Authority of India (UIDAI) has urged Aadhaar holders who were issued the unique identity 10 years back and who have never updated their records, to revise their information in its database.

Aadhaar holders can update their unique ID records by uploading supportive documents (proof of identity and proof of address) either online through myAadhaar portal or offline by visiting the nearest Aadhaar centre, UIDAI said in statement.

“Residents who had got their Aadhaar issued 10 years back, and have never updated after that in these years, such Aadhaar number holders are encouraged to get their documents updated,” the statement said.

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