Have you linked your Aadhaar number with PAN card?

 

Do you pay taxes? If yes, it is crucial to understand the effects of not linking your Aadhaar number to your PAN card because the Central Board of Direct Taxes has set up repercussions for PAN being inactive in accordance with the recently substituted guideline.

Read on….

1. As per the notification substituting rule 114AAA of the Income-tax Rules, 1962 (the Rules) vide notification no. 15 of 2023 dated March 28, 2023, it is very clear that a person who has neglected to disclose their Aadhaar number may suffer the following repercussions as a result of their PAN being inoperative:

  • A refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made;
  • 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 deductions are applicable, such tax shall be deducted at a higher rate, in accordance with Section 206AA’s provisions;
  • Where tax is owed at source, it must be collected at a higher rate in accordance with Section 206CC's rules.

2. These repercussions will start on July 1, 2023 and last until the PAN is operational. A fee of Rs. 1000 would still be charged to activate the PAN by notifying 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 PAN and save your hard-earned money from going into taxes. 

“Never leave that till tomorrow, which you can do today.” -Benjamin Franklin

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