What Happens If Pan Card Is Not Linked To Aadhaar Card?

By March 31, 2023, taxpayers must link their Permanent Account Number (PAN) to their Aadhaar, otherwise, the Central Board of Direct Taxes (CBDT) has stated that the PAN will become inactive. The Securities and Exchange Board of India (SEBI) has also suggested that investors quickly link their PAN and Aadhaar. This is to avoid having numerous PANs assigned to a single individual.

Who must link pan to Aadhaar?

Individuals who obtained their PAN on July 1, 2017, are required to link their PAN and Aadhaar. If not done by March 31, 2023, the PAN will be rendered inoperative.

Who is Exempt?

Those who are at least 80 years old, as well as non-residents and individuals who are not citizens of India, are not required to link their PAN and Aadhaar.

Penalties for not linking pan and Aadhaar:

Failure to link the two could result in serious issues under the Income Tax Act. These include the inability to file ITRs, pending refunds not being received, a higher tax rate when filing income taxes, and difficulty with financial transactions such as banking due to PAN being a necessity for KYC criteria.

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