Aadhaar-PAN Linking: Know Who Is Exempted; Latest Important Details & Rules Here

PAN-Aadhaar linking process: Know about the group of people who do not have to link their PAN and Aadhaar cards.

The official last date to link a Permanent Account Number (PAN) with an Aadhaar card is 31 March. As per the Income Tax Department, failure to complete this process will make the unlinked PAN inoperative. The ones who have not yet linked their PAN card with their Aadhaar must complete the process soon because the last date is near. It is important for everyone to finish the steps correctly by 31 March. Everyone should take note of the latest announcements.

It is important to note that a circular issued by the Central Board of Direct Taxes (CBDT) stated that once a PAN becomes inoperative, an individual has to face all the consequences under the I-T Act. They have to suffer different problems so it is better to link the two IDs within the last date, which is 31 March.

Aadhaar-PAN Linking: Know the Implications for Not Linking

Let's take a look at some implications that individuals have to face if their PAN card is not linked with their Aadhaar card by the last date:

• You cannot file an I-T return using the inoperative PAN.

• Your pending returns will not be processed.

• In the case of defective returns, your pending proceedings will not be completed.

• A higher rate of tax will be deducted.

It is important to note that the provisions of the Income-tax Act state that all individuals must link their PAN card with their Aadhaar card. Everyone should take note of the latest announcements if they do not want to face the above-mentioned implications.

Aadhaar-PAN Linking: Who Is Exempted?

However, one should also know that a few people are exempted from the compulsion. They do not have to link their PAN with their Aadhaar card.

According to the 2017 notification released by the Central Board of Direct Taxes (CBDT), the Aadhaar-PAN linking requirement is not applicable to four kinds of people. They are as follows:

• Individuals who live in the states of Assam, Jammu and Kashmir, and Meghalaya

• People who are Non-Resident Indians (NRIs) as per the Income-tax Act, 1961

• Individuals who are eighty years or above at any time during the previous year.

• A person who is not a citizen of India.

It is important to note that the Aadhaar-PAN linking was free till 31 March 2022. After that, from 1 April 2022, a fee of Rs 500 was imposed and now, it is increased to Rs 1000.