New Delhi: The Revenue Tax Division on Wednesday stated non-linking of PAN with Aadhaar by March 31 would appeal to penalty of as much as Rs 1,000, however such PAN will stay useful for yet one more 12 months until March 2023, for submitting ITR, claiming refunds and different I-T procedures.
The Central Board of Direct Taxes (CBDT), which is the apex decision-making physique on direct taxes, has prolonged the deadline for linking Everlasting Account Quantity (PAN) with Aadhaar many occasions and the final date now could be March 31, 2022.
As per a round issued by CBDT on Wednesday, PAN, not linked to Aadhaar, would grow to be “inoperative” after March 31, 2023. These taxpayers who hyperlink their PAN with biometric Aadhaar by June 30, 2022, could be required to pay late charges of Rs 500. Past that, the penalty would rise to Rs 1,000.
As a way to mitigate the inconvenience to taxpayers, as per notification dated March 29, 2022, a window of alternative has been offered to taxpayers as much as March 31, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking with out going through repercussions, the CBDT stated, including such intimation must be accompanied by late charges.
“Nonetheless, until thirty first March, 2023 the PAN of the assessees who haven’t intimated their Aadhaar, will proceed to be useful for the procedures below the Act, like furnishing of return of earnings, processing of refunds and so on,” the CBDT assertion stated.
After March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall grow to be inoperative and all the results below the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers, the CBDT added.
As per knowledge out there, until January 24, 2022, greater than 43.34 crore PANs have been linked with Aadhaar. Over 131 crore Aadhaar playing cards have been issued thus far. PAN-Aadhaar linkage would assist in eliminating duplicate PAN and curbing tax evasion.
AKM International, Tax Associate, Amit Maheshwari stated “It’s advisable for taxpayers to examine their earnings tax portal and be sure that Aadhaar and PAN are linked. NRIs could have some issues since in some instances they don’t have Aadhaar.”
Nangia Andersen LLP Associate Neeraj Agarwala stated, whereas PAN is used for numerous transactions like opening a checking account, buy of immovable property or proof of identification, inactive PAN will set off domino impact and particular person who haven’t linked their Aadhaar could face a number of challenges.
“As soon as your PAN turns into inactive, the individual shall be restricted from doing monetary transactions (the place quoting of PAN is obligatory like mutual funds), subjected to TDS at larger charges and penalty below part 272B,” Agarwala stated.
For many who don’t have entry to earnings tax portal, the linking course of is made out there by means of SMS additionally, he added.