Home Sms code PAN-Aadhaar Liaison Deadline March 31: All About Process, Status Verification and Sanction

PAN-Aadhaar Liaison Deadline March 31: All About Process, Status Verification and Sanction

NEW DELHI: Deadline for linking Permanent Account Number (PAN) to Biometric Aadhaar is March 31st.
In accordance with Section 139AA of the Income Tax Act 1961, it is mandatory for all users to link PAN to their Aadhaar number otherwise the former will become inoperative from 31st March 2023. This would mean that users will not be able to make trades where PAN listing is mandatory, such as mutual funds.
It should be noted that, for those who miss the deadline, PAN will remain functional for 1 more year until March 2023, for ITR filing, refund request and other IT procedures.
In order to mitigate the inconvenience to taxpayers, as per the notification dated March 29, 2022, a window of opportunity has been provided to taxpayers till March 31, 2023 to make their Aadhaar known to the prescribed authority for binding Aadhaar -PAN without suffering any repercussions, the CBDT said, adding that such an intimation should be accompanied by late fees.
The government has extended the deadline several times over the past few years. In September last year, the last date was extended from September 30, 2021 to March 31, 2022 following the challenges faced by people due to the coronavirus pandemic.
Aadhaar is issued by the Unique Identification Authority of India (UIDAI) to an Indian resident and PAN is a 10-digit alphanumeric number assigned by the Income Tax (IT) Department to a person, company or entity .
According to available data, till January 24, 2022, more than 43.34 crores of PAN have been linked to Aadhaar. Over 131 crore Aadhaar cards have been issued so far. The PAN-Aadhaar linkage would help eliminate duplicate PANs and combat tax evasion.
In a tweet, the Central Board of Direct Taxes (CBDT) reminded users to respect the latest date and to link PAN to Aadhaar to help with quick verification of tax returns (ITR).

How to bind:
* Visit the IT department e-filing portal (www.incometaxindiaefiling.gov.in)
* Under ‘Quick Links’ section, click on ‘Aadhaar Link’
* Enter PAN, Aadhaar number and other required details.
* Tick the box only if the year of birth is mentioned on your Aadhaar card then tick the box to agree to validate your Aadhaar details with UIDAI.
* Enter the captcha code on your screen (visually impaired users may request a one-time password, or OTP, instead of the captcha code).
* Click on the ‘Aadhaar Link’ tab.
Alternatively, it can also be linked by SMS:
* Send SMS from Aadhaar’s registered phone number to 567678 or 56161.
* SMS must be in the format: UIDPAN
* Make sure space between UIDPAN, your Aadhaar number and PAN
How to check status:
* Visit the IT department e-filing portal (www.incometaxindiaefiling.gov.in)
* In the “Quick Links” section, click on the “Aadhaar Link Status” option
* In the screen that opens, enter your PAN and Aadhaar number
* Click “View Aadhaar Link Status”
* A pop-up window will appear on your screen confirming the status
Penalty for non-compliance
In a notification, the CBDT had said that Aadhaar’s delayed notice will incur a late fee of Rs 500, in cases where it is bound within the next 3 months or by June 30, 2022.
Subsequently, Rs 1,000 should be paid by taxpayers as a penalty.
Non-binding of the PAN with Aadhaar will lead to the ineffectiveness of the PAN. It can be re-operationalized upon payment of a penalty payment, indicates a CBDT notification dated March 29.
As mentioned above, after March 31, 2023, the PAN of taxpayers who fail to make their Aadhaar known, as required, will become inoperative and all consequences under the law for not providing, suggesting or quoting the PAN will cease. will apply to these taxpayers, the CBDT added.
While PAN is used for various transactions such as opening a bank account, buying real estate or proof of identity, inactive PAN will trigger a domino effect and people who have not linked their Aadhaar can face multiple challenges.
“Once your PAN becomes inactive, the person will be unable to engage in financial transactions (where PAN listing is mandatory such as mutual funds), subject to TDS at higher rates and penalty under section 272B,” Nangia Andersen LLP partner Neeraj Agarwala told the news agency. PTI.
(With agency contributions)