What If You Don't Link your Aadhaar and PAN Today? Explained
The linking of PAN and
Aadhaar is mandatory for all taxpayers in the country. The original deadline of
March 31 had been extended by the Income Tax Department to today, June 30. Now,
from today, there will be consequences for anyone who does not link their PAN
and Aadhaar.
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All taxpayers who were
issued a Permanent Account Number (PAN) as of July 1, 2017, who are eligible to
receive an Aadhaar Number, must link their PAN and Aadhaar by June 30, 2018,
according to the Income Tax Department. Those who live in Meghalaya, Assam, and
Jammu and Kashmir, as well as those who are 80 years or older or who are not
Indian nationals, are excluded from attaching their documents. Officials stress
the significance of integrating PAN and Aadhaar in their efforts to reduce tax
avoidance.
All taxpayers who were
issued a Permanent Account Number (PAN) as of July 1, 2017, who are eligible to
receive an Aadhaar Number, must link their PAN and Aadhaar by June 30, 2018,
according to the Income Tax Department. Those who live in Meghalaya, Assam, and
Jammu and Kashmir, as well as those who are 80 years or older or who are not
Indian nationals, are excluded from attaching their documents. Officials stress
the significance of integrating PAN and Aadhaar in their efforts to reduce tax
avoidance.
The Department of
Information Technology has stated that taxpayers who fail to link their PAN and
Aadhaar by June 30 will face consequences in July. These individuals’ PAN cards
will become invalid, and no refunds will be issued for PANs not linked to
Aadhaar. In addition, no interest will be charged on the refund for the duration
that the PAN remains inactive.
Tax deducted at source
(TDS) and tax collected at source (TCS) rates will be increased for individuals
who have not linked their PAN and Aadhaar.
Investors must also
connect their PAN and Aadhaar numbers. According to a circular issued by the
Securities and Exchange Board of India (SEBI), “Since PAN is an important
identification number and a component of the requirements for KYC for every
securities market transaction, all SEBI registered companies and Market Infrastructure
Institutions (MII) are required to provide valid KYC for every market
participants.”
The circular stated
that all existing investors must associate their PAN with Aadhaar in order for
the stock market to continue operating smoothly and to avoid repercussions.
Until the PAN and Aadhaar are linked, securities and other transactions could
be restricted.
Any of these
consequences for failing to link the paperwork will not apply to taxpayers who
fall into the exempt category.
The Income Tax
Department states that “upon intimation of Aadhaar to the prescribed
authority after payment of Rs.1,000,” a PAN can be made active again
within 30 days.
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