The deadline for linking Permanent Account Number (PAN) with Aadhaar is fast approaching, and some have requested another extension. Nevertheless, there is no anticipation for a PAN-Aadhaar linking deadline extension this year.
The Central Board of Direct Taxes (CBDT) has previously extended the PAN-Aadhaar linking deadline multiple times. Those who have yet to link their PAN with Aadhaar may still do so before March 31; if they fail to do so, their PAN will become inactive starting April 1, 2023.
To avoid any potential issues in the future, it is crucial that all users complete the PAN-Aadhaar linking process before the last date, as PAN is a crucial document for taxation and various banking-related tasks.
While a senior official had previously told The Financial Express that there were no intentions to extend the PAN-Aadhaar linking deadline, the possibility of a last-minute change was not entirely ruled out.
Why PAN-Aadhaar Link is important
Various financial services and investments require the completion of PAN-Aadhaar linking as a part of the Know Your Customer (KYC) requirements.
The purpose of the PAN-Aadhaar linking exercise is to prevent the duplication of PANs and detect fake PANs, which has been a recurring problem in the past. If an individual’s PAN becomes inoperative, they will be unable to file their Income Tax Returns, and any pending ITRs and Income Tax Refunds will not be processed. Additionally, those who file ITRs without a PAN are subject to paying taxes at a higher rate.
SEBI regulations mandate that all participants in securities markets must have a valid PAN.
