According to the announcements made by the ministry of finance, anyone who was allocated a PAN on July 1, 2017, is eligible to get an Aadhaar number and must link the Aadhaar number to the PAN. If this is not done, the PAN will become invalid.
In India, Aadhaar is updated with its citizens’ biometric and demographic information and has become an essential form of identification. Typically, it links to bank accounts, insurance, SIM cards, the public provident fund (PPF), the national savings certificate (NSC), and other financial services.
The government deadline to link your PAN and Aadhaar has been extended multiple times; however, the current deadline is June 30, 2023. Therefore, if you do not link your PAN with your Aadhaar by now, your PAN will become invalid on July 1, 2023.
“All PAN holders who do not fall under the exempt category must link their PAN with their Aadhaar before 30.06.2023, in accordance with the Income Tax Act of 1961.” The Income Tax Department stated that the unlinked PAN would cease operation on July 1, 2023.
Is it required to link PAN and Aadhaar?
To reduce tax evasion and increase compliance, the government has mandated that individuals link their PAN and Aadhaar.
Who Doesn’t Need PAN – Aadhaar Connection?
These individuals are included in the “exempt category,” as stated in a notification issued in May 2017 by the Union Finance Ministry;
1. Living in the UT of Jammu and Kashmir, the States of Assam, and Meghalaya
2. A non-resident, as defined by the 1961 Income Tax Act
3. Of eighty years or older at any point in the preceding year
4. Not an Indian citizen.
Are the PAN card and Aadhaar link required for everyone?
The requirement to link Aadhaar and PAN does not apply to anyone residing in the aforementioned regions.
However, the provided exemptions may be altered in response to the most recent notifications from the government.
If a user falls into any of the aforementioned categories and voluntarily wishes to link their Aadhaar and PAN, they must pay a specified fee.
According to a statement by the ministry, taxpayers who fail to provide their Aaadhar as required will lose access to use their PAN starting July 1, 2023. In any case, the PAN can be made a usable addition in 30 days upon the intimation of the Aadhaar to the prescribed authority after a fine payment of Rs 1,000.
The Indian Express also stated that TDS and TCS would be collected or deducted at a higher rate under the Act and that an individual whose PAN becomes inoperative will not receive any refunds made against such PANs. Additionally, interest will not be payable on such refunds for the period during which the PAN remains inoperative.
The Ministry of Finance elaborated on the figures by stating that as of March 28, more than 51 crores (510 million) PANs had already been linked to Aadhaar.