Lagatar24 Desk
New Delhi, Dec 24: Permanent Account Numbers (PANs) that are not linked with Aadhaar by the end of March of next year (2023) would be declared “inoperative,” according to a new advisory of the Income Tax department published on Saturday.
“What is mandatory, is necessary. Don’t delay, link it today! 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 Aadhaar before 31.3.2023. From 1.04.2023, the unlinked PAN shall become inoperative,” the advisory said.
According to a notification released by the Union Finance Ministry in May 2017, the “exempt category” consists of people who live in the states of Assam, Jammu and Kashmir, and Meghalaya; who are considered non-residents under the Income-tax Act, 1961; who were 80 years of age or older at any point in the previous year; and who are not Indian citizens.
According to a circular published by the Central Board of Direct Taxes (CBDT) on March 30, if a PAN ceases to be active, a person will be held accountable for all I-T Act consequences and face a range of repercussions.
A person cannot file an I-T return using an inoperative PAN; pending returns cannot be processed; pending refunds cannot be issued to inoperative PANs; pending proceedings, such as those involving defective returns, cannot be completed once the PAN is inoperative; and tax must be withheld at a higher rate.
