PAN-Aadhaar Linking Deadline Looms: March 31, 2023
The Central Board of Direct Taxes (CBDT) has issued a final warning to link PAN with Aadhaar before March 31, 2023. Failure to comply with this requirement will result in a penalty of Rs 1,000, and the PAN card becoming inoperative for all financial transactions. The Securities and Exchange Board of India (SEBI) has also notified that linking of Aadhaar and PAN is mandatory for initiating any transactions in financial markets like NSE and BSE.
Why is it Mandatory to Link PAN with Aadhaar Card?
The Income-tax Department of India has made it mandatory to link Aadhaar with PAN to address the issue of duplication of PANs. By linking Aadhaar with PAN, the government can verify the identity of taxpayers, prevent tax evasion, and ensure compliance with tax laws. Additionally, it helps in eliminating fake and duplicate PANs, thus increasing the efficiency of the tax system.
Who Needs to Link PAN with Aadhaar?
As per the CBDT circular issued in March 2022, all individuals who were allotted a PAN on or before July 1, 2017, are required to link their Aadhaar number with their PAN. The deadline for this mandatory linking is March 31, 2023. Failure to do so will result in the PAN becoming inoperative.
Who is Exempted from Aadhaar-PAN Linking?
While the mandate applies to all Indian citizens, there are some categories of individuals who are exempted from the Aadhaar-PAN linking. Citizens of age 80 years and above, non-residents as per the Income-tax Act, and people who are not citizens of India but living in the country are exempted from the Aadhaar-PAN linking.