The deadline to link PAN (Permanent Account Number) with Aadhaar in India is ending today (June 30, 2023). This has created a lot of concern among taxpayers.
There is a possibility that the government might extend the deadline, but it will depend on the assessment of the situation.
Here is the current situation, the penalties for not linking PAN with Aadhaar, and how it may affect taxpayers.
Current Deadline and Penalties
The deadline for linking PAN with Aadhaar is June 30, 2023. If you fail to meet this deadline, the government can impose penalties.
Between April 1, 2022, and June 30, 2022, citizens who did not link their Aadhaar with PAN were fined Rs 500.
The government extended the deadline from July 1, 2022, to March 31, 2023, with a penalty fee of Rs 1,000.
The current deadline is June 30, 2023, with the same penalty for non-compliance.
Will Deadline Be Extended?
Experts in the field anticipate that the government might extend the PAN-Aadhaar linking deadline this year, just as they did last year.
However, there is a likelihood that the penalties for not complying with the deadline will be higher.
These insights come from experts who closely track developments in tax regulations.
Amit Gupta, the managing director at SAG Infotech, highlights that individuals may easily confuse these deadlines, resulting in non-compliance.
Experts recommend linking your PAN card with your Aadhaar card before the deadline to ensure the security and activation of your PAN card.
This would provide clarity and prevent confusion among taxpayers.
According to a law called section 139AA in the Income-tax Act of 1961, it is now mandatory for individuals who are eligible for an Aadhaar card to provide their Aadhaar number when applying for a PAN card or filing their income tax return.
This rule has been in effect since July 1, 2017.