Please remain informed that IT department made it mandatory for all PAN holders (except those who fall under the exempt category) to link their PAN-Aadhar by 30th June 2023. Therefore from July 1, as per Income Tax Department official guidelines all PAN cards those were not linked to Aadhaar became inoperative. Additionally, people who hold such PAN will also not be able to avail certain services where quoting the PAN is mandatory. In other words one cannot present the inoperative PAN anywhere when required, that means, quoting that inoperative PAN will be considered a crime.
Therefore, in all types of financial transactions, whether with the bank or with others, one will face many difficulties because in all types of financial transactions PAN is one of the important Know Your Customer (KYC) tool. As such, for example, one can not open a bank account, or a Demat account, getting credit/debit cards, etc., process income tax refunds as well as sell / buy shares of those companies which are not listed on a recognised Stock Exchange.
In addition to the above, due to inoperative Permanent Account Number (PAN), Tax Deducted at Source (TDS)/ TCS (Tax Collected at Source) will be deducted / deposited at a higher rate. Additionally, due to inoperative Permanent Account Number (PAN), proceedings pending in the Income Tax Department cannot be completed particularly in case of defective returns though IT department allows one to file your IT return.
Hence considering all above facts I am suggesting , who have recently acquired Permanent Account Number (PAN) without Aadhaar as one of the proof of identity, should immediately link their PAN with Aadhaar, visiting a PAN card centre, fill out the appropriate form and submit it with photocopies of PAN and Aadhaar cards for PAN-Aadhaar linking and those who, for any reason, have not yet linked their PAN-Aadhaar, then they are required to pay prescribed penalty first and then should initiate properly to link it.
Conclusion: As the deadline for PAN-Aadhaar linking approaches, it’s crucial to understand its significance. Non-compliance leads to inoperative PAN cards and difficulties in financial transactions. To avoid penalties and ensure seamless transactions, individuals must promptly link their PAN with Aadhaar as per the Income Tax Department’s guidelines.
Goverdhan Das Binani ‘Raja Babu’ | Bikaner / Mumbai | 7976870397