The Central Board of Direct Taxes (CBDT) has extended the deadline for linking PAN and Aadhaar by another one year till March 31, 2023. In addition to that, unlinked PAN will not be blocked and will remain operative. While that is the good news, the bad news is that those linking PAN and Aadhaar from April 1, 2022 will have to pay a fee for doing so. If you link the two sets of identity by March 31, 2022, the service is free.
In a circular, CBDT stated: “In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated 29th March, 2022, a window of opportunity has been provided to the taxpayers up to 31st of March, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions.”
For another year, your un-linked PAN will continue to function as normal and will not be blocked. So, access to various financial transactions such as opening a bank account, buying property, filing tax returns, investing in mutual funds, etc., will continue as before. “Till 31st March, 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc.,” the tax department said.
While your PAN will work as normal, linking it with Aadhaar will cost you from April 1. When you go to link the two, you will have to pay Rs500 till June 30, and Rs 1,000 after that. "…taxpayers will be required to pay a fee of Rs 500 up to three months from 1st April, 2022 and a fee of Rs 1000 after that, while intimating their Aadhaar," CBDT added.
An inactive PAN can block access to almost all financial transactions and the individual who have not linked their Aadhaar may face multiple challenges. Linking PAN and Aadhaar is easy. It can be done through the income tax website https://incometaxindiaefiling.gov.in/ or via SMS.
"After 31st March, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers," it added.
This is yet another extension from CBDT. Recently, the Association of National Exchanges Members of India (ANMI) had urged the Securities and Exchange Board of India (Sebi) not to suspend accounts for not linking PAN with Aadhaar in the interest of the industry as well as investors. ..