Have you linked your Aadhaar number with PAN card?

 


Are you a taxpayer? If yes, then it is very important to understand the impact of not linking your Aadhaar number with PAN card because Central Board of Direct Taxes has issued consequences for PAN becoming inoperative as per the newly substituted rule.

Read on….

1. Consequent to the notification substituting rule 114AAA of the Income-tax Rules, 1962 (the Rules) vide notification no. 15 of 2023 dated March 28, 2023, clarifies that a person who has failed to intimate the Aadhaar number shall face the following consequences as a result of his PAN becoming inoperative:

  • There will be no refund of any tax liability, in full or in part, owed in accordance with the terms of the Act;
  • Interest shall not be payable on such refund for the period, beginning with the date specified under sub-rule (4) of rule 114AAA and ending with the date on which it becomes operative;
  • Where tax is deductible, such tax shall be deducted at higher rate, in accordance with the provisions of Section 206AA;
  • where tax is collectible at source, such tax shall be collected at higher rate, in accordance with the provisions of Section 206CC.

2. These consequences shall take effect on July 1, 2023 and continue until the PAN becomes operative. A fee of Rs. 1000 will continue to apply to make the PAN operational by informing the Aadhaar number.

3. The consequences of PAN becoming inoperative shall not be applicable to those persons who have been provided exemption from informing Aadhaar number under the provisions of sub-section (3) of Section 139AA of the Act. 


Conclusion: The Tax filing season has started and you still have time to link your Aadhaar with your PAN and save your hard-earned money from going into taxes.


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