Consequences of non-linkage of Adhar PAN till 31st March 2023

 

1] CBDT has mandated all taxpayers to link their Adhar with PAN by March 31,2023. As per section 139AA of Income Tax Act 1961, every person eligible to obtain an Aadhar & has PAN must link their Adhar with their PAN by March 31,2023.

2] If taxpayer fails to link Adhar with their PAN by March 31,2023, then their PAN number will become inoperative. Taxpayers who have not yet linked their Adhar with their PAN can do so by paying a late fee of Rs 1,000/

3] Consequences of non-linkage of Adhar PAN till 31st March 2023:

a) Taxpayer PAN will become inoperative until linked with Adhar

b) TDS/TCS deduction will attract a higher rate applicable, since PAN has become inoperative 

c) Investors will not be able to carry out any transaction in NSE or BSE.

d) Assesses will not be able to do banking transaction such as booking of Fixed Deposit above Rs 50,000/- depositing cash above Rs. 50,000/- & obtaining a new Debit/ Credit Card.

e) Investors will not be able to Invest or Redeem their Mutual Funds.

f) Assesses will not be able to purchase any foreign currency beyond Rs. 50,000/-.

g) Taxpayers cannot file ITR or claim ITR refund with inoperative PAN. Pending returns will not be processed & pending refunds will not be issued to inoperative PAN. TDS/TCS credit will not appear in Form 26AS & TDS/TCS certificate will not be available. Taxpayers will be unable to submit 15G/15H declarations for Nil TDS.

- CA Neha Vora