Did you receive a message from the tax authorities stating that your PAN will soon become inoperative? If so, here are some crucial points you should know.
The Aadhaar card contains a unique 12-digit number issued to every Indian citizen by the Unique Identification Authority of India (UIDAI). This number provides access to the cardholder’s details in the government database, such as biometrics and contact information.
The Permanent Account Number or PAN is a means of identifying taxpayers in India. It contains a unique 10- digit alphanumeric identification number assigned to Indians, particularly those who pay tax.
It is compulsory to link Aadhaar with PAN, as it aids in income tax proceedings.
1. Firstly, visit the official income tax website: https://www.incometax.gov.in/iec/foportal/
2. On the home page, click on the “Link Aadhaar status.”
3. Enter your Aadhaar number and PAN number.
4. Click on “View Aadhaar link status.”
A warning message will appear on the screen if your PAN and Aadhaar are not linked.
The Income Tax authorities also stated that anyone who falls into one of the above categories can voluntarily link their Aadhaar with PAN without facing any consequences.
This can be achieved in two ways:
PAN and Aadhaar are unique identification cards that serve as proof of identity for various registration and verification purposes. Linking of PAN and Aadhaar is necessary for the following reasons:
The government can monitor all taxable transactions of a taxpayer by linking Aadhaar and PAN, thereby eliminating tax evasion.
Linking PAN and Aadhaar reduces the chances of individuals orentities applying for multiple PAN cards to defraud the government and evade taxes.
Without linking, you cannot open a bank account/demat account, make large deposits, purchase mutual funds above a certain limit, buy or sell items or services beyond a certain value, and your pending returns and refunds will not be processed.
iv. Increased TDS/TCS: TDS/TCS might sometimes apply at rates of 30%.
v. Credit/debit card restrictions: You will not be able to get new credit or debit cards.
Finally, if you have not linked your PAN with Aadhaar, your PAN becomes inoperative from 1st July 2023.
If PAN and Aadhaar are not linked by 30th June 2023, the PAN becomes inoperative from 1st July 2023. You can still link PAN and Aadhaar by paying a penalty of 1,000 INR to the department.
Moreover, the reactivation process takes around 30 days from the date of linking to reactivate the PAN card. For instance, if you initiate the process of PAN card activation today, i.e., on July 6th, your PAN card will become operative by August6th.
Read More: IMPORTANT DEADLINES IN JULY 2023: ITR FILING, EPFO PENSION, TDS
i. PAN Card
ii. Aadhaar card
iii. Mobile number
So, if you’ve already linked your accounts, verify your status. For those who haven’t, it’s time to hurry and link your PAN with Aadhaar.
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