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Home Blitz India Media

PAN not linked with Aadhar to be ‘inoperative’ by March

Blitzindiamedia by Blitzindiamedia
December 30, 2022
in Blitz India Media, National
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NEW DELHI: The Income Tax department has issued an advisory that those permanent account numbers (PAN) which are not linked with Aadhar will be rendered “inoperative” by the end of March 2023 “What is mandatory is necessary.

Don’t delay, link it today!” the department said in a public advisory. “As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhar before 31.3.2023. From 1.04.2023, the unlinked PAN shall become inoperative,” it added.

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The ‘exempt category’, according to a notification issued by the Union Finance Ministry in May 2017, is those individuals residing in Assam, Jammu & Kashmir and Meghalaya; a nonresident as per the Income-tax Act, 1961; of the age of 80 years or more at any time during the previous year and a person not a citizen of India.

A circular issued by the Central Board of Direct Taxes (CBDT) on March 30 said once a PAN becomes inoperative, an individual shall be liable to all the consequences under the I-T Act and will have to suffer a number of implications.

The person shall not be able to file I-T return using the inoperative PAN; pending returns will not be processed; pending refunds cannot be issued to inoperative PANs; pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative and tax will be required to be deducted at a higher rate.

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