PAN-Aadhaar linking deadline extended to June 30

The central government has extended the last date for a taxpayer to link the Permanent Account Number (PAN) with Aadhaar. According to a release by Central Board of Direct Taxes (CBDT), the date has been extended till June 30, 2023. It said that notification in this regard is being issued separately. Linking PAN with Aadhaar is important to help curb tax evasion. If a taxpayer fails to link the two documents, his/her PAN card will become inoperative. The taxpayer will not be able to furnish, intimate or quote his PAN in such cases.

The CBDT also mentioned the penal action a taxpayer will have to face from July 1 in case his/her Aadhaar and PAN are not linked. These include:

  • No tax refund to be allowed against such PAN cards
  • If the taxpayer links the two documents after filing the return, the Income Tax department will not pay interest on refund for the period during which the two documents were not linked
  • Both tax deducted at source (TDS) and tax collected at source (TCS) will be deducted/collected at higher rate in such cases

A taxpayer can make his/her PAN card operative again within 30 days after payment of late fees of ₹ 1,000.