The Income Tax Department has issued a fresh notification to taxpayers, asking them to link their Permanent Account Number (PAN) with Aadhaar by May 31, 2024. The tax department posted this reminder reminder on X, highlighting the importance of meeting the deadline to avoid higher tax deductions at source (TDS). "Kind attention taxpayers, please link your PAN with Aadhaar before May 31, 2024... Linking your PAN with your Aadhaar by May 31 ensures you don’t face higher tax deduction/tax collection under Section 206AA and 206CC of the Income Tax Act, 1961, due to an inoperative PAN for transactions entered into before March 31, 2024," said the I-T Department.
What happens if PAN not linked to Aadhaar?
Failure to link PAN with Aadhaar could significantly affect income tax return (ITR) filings, with the deadline for filing ITR set for July 31, 2024. The Central Board of Direct Taxes (CBDT) emphasised the importance of linking PAN with Aadhaar in a circular issued on April 23, 2024 (CBDT Circular No. 6/2024), detailing the regulations and potential repercussions of not completing the linkage.
The April circular also addressed issues faced by deductors and collectors who had deducted TDS/TCS at regular rates but were required to deduct or collect at double the rate due to the deductee’s PAN being inoperative since April 1, 2023. "In such cases, as the deduction/collection has not been made at a higher rate, demands have been raised by the Department against the deductors/collectors while processing of TDS/TCS statements under section 200A or section 206CB of the Act, as the case may be,” the CBDT said.
Who needs to link Aadhaar and PAN?
According to Section 139AA of the Income Tax Act, every individual allotted a PAN as of July 1, 2017, and eligible for an Aadhaar number, is required to link the two in the specified form and manner. Failure to complete this linkage by June 30, 2023, will render the PAN inoperative. However, individuals in the exempted category will not be impacted by this requirement.
Follow these steps to link your PAN and Aadhaar
- Go to https://incometaxindiaefiling.gov.in/.
- Register and log in to your account.
- Proceed to the profile settings and select the option for the Aadhaar link.
- Verify the date of birth and gender information on your PAN card and match it with your Aadhaar card.
- Enter your Aadhaar number and complete the process.
- Ensure that you complete the PAN-Aadhaar linking process before midnight tonight to avoid any complications.
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