Your PAN Card Will Be Suspended If Aadhaar Not Linked By March, 2023; But Pay Rs 1000 Penalty
A fine of Rs. 500 shall be imposed by the Central Board of Direct Taxes (CBDT) if by March 31, anyone fails to make sure that their PAN and Aadhar are linked.
If the March 31 deadline is missed, fine shall be Rs. 500. However, in case the seeding process is not completed by June 30, 2022, then the penal fee shall be doubled.
Non-linked PAN to be inoperative after March 31, 2023
However, when it comes to the validity of the non-linked PAN, CBDT has confirmed that such PAN shall remain to be valid till March 31, 2023. However, post the date they shall be made inoperative if the seeding process is not complete.
Amit Maheshwari, Tax Partner, AKM Global, a tax and consulting firm said that “Any failure may lead to the PAN becoming inoperative, which means that a person had no PAN for income-tax purposes. Tax payers should check the income tax portal and ensure that the Aadhaar and PAN are linked. NRIs may have some concerns since in some cases, they do not have Aadhaar”.
Consequences of Non-compliance
CA Karan Batra, Founder, Chartered Club said that the PAN being rendered inoperative is particularly catastrophic for several financial transactions as one will not be then able to file the income tax returns. Not just the ITR, but one shall not be able to process the SIP transactions. Non seeded PAN shall affect the mutual fund transactions too.
It was earlier clarified by the markets regulator Securities and Exchange Board of India (SEBI) that the investments of only those investors whose PAN is mapped to Aadhaar will be operational. If PAN and Aadhar are not linked, one will not be able to open a new broking or demat account.