Those tax payers who have not linked their PAN to Aadhaar can still do it in this financial year, but for a price. The Central board of direct taxes (CBDT) stated that a fee amounting to ₹500 will be charged between April 1 and June 30, 2022. Those who decide to link the two key documents after June 30 but before March 31, 2023 will have to cough up ₹1,000.
“In order to mitigate the inconvenience to the taxpayers ... a window of opportunity has been provided to the taxpayers upto 31st of March, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions,” CBDT, the apex decision making body on direct taxes, said in statement recently.
“However, till 31st March, 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc," the CBDT statement added.
Earlier the deadline to link aadhaar to PAN was September 30, which was extended to March 31, 2022. But those extensions happened without imposing any fee.
Now the deadline to watch out for is March 31, 2022. If taxpayers don’t link their PAN to aadhaar by then, then the PAN will become inoperative.
As one would expect, inoperative PAN would cause huge inconvenience to tax payers.
As per the 139AA of the Income Tax Act, every person who has a PAN as on July 1, 2017 and who is eligible to obtain an aadhaar number must mandatorily link aadhaar and PAN.
Some categories of persons have been exempted. These include those residing in Assam, Jammu and Kashmir, Meghalaya and non-residents.
There are two ways to link aadhaar and PAN. The first is online method and second is offline. In the online method, one can do it on the income tax portal where one can click on the option of 'Link Aadhaar'.
Here you are meant to enter details such as aadhaar, PAN, and mobile number. You will receive an OTP and upon sharing it, the linking will take place.
The other method to link the two documents is offline wherein you can send a short sms message from your mobile number linked with aadhaar.
If there is any problem in linking PAN with aadhaar, this could be because of mismatch in details such as name, phone number, date of birth as stored in the aadhaar and PAN database.
One can rectify these details before going ahead with the linking.