Aadhaar Pan Link: The deadline to link Aadhaar with PAN card is fast approaching. The last day to link both the documents is March 31. After March 31, 2023, PAN of taxpayers not linked with Aadhaar will become inoperative.
Under the provisions of the Income Tax Act, 1961, every person who has been allotted PAN as on July 1, 2017, is required to link it with Aadhaar. Failing to do so, their PAN will become inoperative and all processes requiring PAN will be put on hold.
If the PAN card is closed then how will it be operational?
As per the new section 234H of the Income Tax Act, a person can link PAN card with Aadhaar by paying a fee of Rs 1000 on the tax department’s website www.incometax.gov.in.
PAN card is a picture identification card that is recognized by all Indian government and non-government departments. Linking of Aadhaar and PAN card is essential for the Income Tax Department as Aadhaar is biometric based and cannot be obtained on the basis of any other identity card.
According to the department, the main objective behind linking of PAN and Aadhaar is to reduce the number of duplicate PANs and improve tax compliance. At the same time, it was told that if the PAN becomes inactive, then it will become active again after linking it with the Aadhaar card.
Those eight reasons
The eight reasons you are being told. Knowing them, you will have to link Aadhaar and PAN card by 31st March. If you do not do this, you may have to face trouble.
- Cannot open bank account
- No TRAVEL: You need a PAN to get your passport made.
- Can’t deposit more than ₹50,000 at a time or more than ₹2,50,000 in a year in banks / NBFCs.
- Cannot buy mutual fund units above ₹50,000.
- Cannot buy or sell goods or services worth more than ₹50,000.
- Pending returns cannot be processed and refunds will not be processed.
- TCS/TDS will sometimes be applicable at the rates of 30%.
- New debit or credit cards will not be available.
