Good news: Deadline extended for linking pan with aadhar and the following are the repercussions of failing to intimate aadhar.
For the past few years, the income tax department is continuously trying to educate people to link their pan with aadhar. As per the press release more than 51 crore taxpayers have already completed the process, but for the people who have still not linked their pan with aadhar government has issued some guidelines
- Before 31 march 2022, linking pan with aadhar was free but after 1 April 2022 a penalty of 500/- was imposed and was later increased to Rs. 1000/- from 1 July 2022.
As per the press release, dated 28 March 2023, the Ministry of Finance has extended the date of linking pan with aadhar to 30 June 2023.
From 1 July 2023, People who have not linked their pan with aadhar, their pan will become in-operative and will face the following repercussions:
- No refund will be made against such PAN
- Interest will not be paid for the period for which PAN was in-operative
- TDS/TCS shall be deducted/collected at higher rates as per the Act
What is the solution after Pan has become inoperative?
Within 30 days of intimation of aadhar to the prescribed authority and after paying a fee of Rs. 1000/- it can be made operative again.