Link your PAN and Aadhaar: Here’s what can happen if you don’t
The Central Board of Direct Taxes (CBDT) has given taxpayers until June 30, 2023, to link their permanent account number (PAN) with their Aadhaar number. This is mandatory for all taxpayers, as non-compliance will result in the PAN becoming inoperative from July 1, 2023. The CBDT announced this linking after noticing instances, where multiple permanent account numbers were allotted to one person or one PAN, was allotted to more than one person. To maintain a robust de-duplication of the PAN database, it was made mandatory for eligible taxpayers to quote their Aadhaar in their PAN application form and return of income.
The Income-tax Act requires all individuals who have been allotted a PAN as of July 1, 2017, to intimate their Aadhaar Number so that the Aadhaar and PAN can be linked. Failure to do so will result in the PAN becoming inoperative. Non-compliance may result in an inability to file income tax returns using the inoperative PAN, processing pending returns, issuing refunds, completing defective returns, and deducting taxes at a higher rate.
Sebi made it mandatory for investors to link PAN with Aadhaar to ensure valid KYC for all participants in the securities market. Existing investors are required to ensure linking their PAN with their Aadhaar number within the timeline for continuous and smooth transactions in the securities market. To link PAN and Aadhaar, click on the Link Aadhaar option available on the CBDT’s official website at www.incometax.gov.in.
