PAN Aadhaar Link: What happens if you fail to meet March 31 deadline? | India Business News


NEW DELHI: The present deadline to hyperlink PAN (Everlasting Account Quantity) with Aadhaar ends on March 31 and the alphanumeric identifier would turn into inoperative after that. The deadline has seen many extensions prior to now.
Earlier, as per the rule, if PAN was not linked with Aadhaar by a specified date, then the 10-character alphanumeric identifier would turn into ‘invalid’. However the revenue tax (I-T) division later modified its stance to ‘inoperative’.
What occurs if PAN turns into inoperative?
In case of inoperative PAN, “furnishing, intimating or quoting” the quantity for monetary transactions below the I-T Act is not allowed till it’s linked with Aadhaar. Whereas if deemed invalid (not relevant now), it was interpreted that an individual by no means had PAN.
Aadhaar is issued by the Distinctive Identification Authority of India, or UIDAI, to a resident of India and PAN is a 10-digit alphanumeric quantity allotted by the I-T division to an individual, agency or entity.
Can PAN be linked with Aadhaar after March 31?
The Central Board of Direct Taxes (CBDT) has issued a recent discover, dated February 13, which talked about that after March 31, 2020, PAN “shall turn into operative from the date of intimation of Aadhaar quantity” and provisions/penalties of not linking the 2 “shall not be relevant from such date of intimation”. This means that, PAN may very well be linked with Aadhaar after the deadline however the situation is that it’ll turn into operative as soon as it’s linked with the 12-digit distinctive identification quantity.
The CBDT frames insurance policies for the tax division.
Part 139 AA (2) of the I-T Act states that each particular person having PAN as on July 1, 2017, and eligible to acquire Aadhaar, should intimate his/her Aadhaar quantity to the tax authorities.
‘Method of constructing everlasting account quantity inoperative’
The CBDT in its new notification inserted adjustments within the I-T guidelines. The brand new sub-section 114AAA ‘Method of constructing everlasting account quantity inoperative’, says “(1) The place an individual, who has been allotted the everlasting account quantity as on the first day of July, 2017 and is required to intimate his Aadhaar quantity below sub-section (2) of part 139AA, has did not intimate the identical on or earlier than the 31st day of March, 2020, the everlasting account variety of such particular person shall turn into inoperative instantly after the stated date for the needs of furnishing, intimating or quoting below the Act,” the CBDT notification stated.
An individual, who hasn’t linked PAN with Aadhaar, shall be responsible for all the results below the I-T Act. “(2) The place an individual, whose everlasting account quantity has turn into inoperative below sub-rule (1), is required to furnish, intimate or quote his everlasting account quantity below the Act, it shall be deemed that he has not furnished, intimated or quoted the everlasting account quantity, because the case could also be, in accordance with the provisions of the Act, and he shall be responsible for all the results below the Act for not furnishing, intimating or quoting the everlasting account quantity,” it added.
The notification’s third level talked about the scenario during which PAN may very well be linked with Aadhaar. “(3) The place the particular person referred to in sub-rule (1) has intimated his Aadhaar quantity below sub-section (2) of part 139AA after the 31st day of March, 2020, his everlasting account quantity shall turn into operative from the date of intimation of Aadhaar quantity for the needs of furnishing, intimating or quoting below the Act and provisions of sub-rule (2) shall not be relevant from such date of intimation,” it learn additional.
It may be famous that PAN could be linked with Aadhaar by sending SMS (brief messaging service), by visiting e-filing web site or by visiting assigned PAN service centre. Taxpayers are suggested to finish the PAN-Aadhaar linking course of earlier than the deadline.





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