The Central Board of Direct Taxes (CBDT), which is the apex decision making body on direct taxes, has extended the deadline for linking Permanent Account Number (PAN) with Aadhaar many times and the last date now is March 31, 2022.
As per a circular issued by CBDT on Wednesday, PAN, not linked to Aadhaar, would become "inoperative" after March 31, 2023. Those taxpayers who link their PAN with biometric Aadhaar by June 30, 2022, would be required to pay late fees of Rs 500. Beyond that, the penalty would rise to Rs 1,000.
In order to mitigate the inconvenience to taxpayers, as per notification dated March 29, 2022, a window of opportunity has been provided to taxpayers up to March 31, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions, the CBDT said, adding such intimation would have to be accompanied by late fees.
"However, 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 CBDT statement said.
After March 31, 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, the CBDT added.
As per data available, till January 24, 2022, more than 43.34 crore PANs have been linked with Aadhaar. Over 131 crore Aadhaar cards have been issued so far. PAN-Aadhaar linkage would help in eliminating duplicate PAN and curbing tax evasion.
AKM Global, Tax Partner, Amit Maheshwari said "It is advisable for taxpayers to check their income tax portal and ensure that Aadhaar and PAN are linked. NRIs may have some concerns since in some cases they do not have Aadhaar."
Nangia Andersen LLP Partner Neeraj Agarwala said, while PAN is used for various transactions like opening a bank account, purchase of immovable property or proof of identity, inactive PAN will trigger domino effect and individual who have not linked their Aadhaar may face multiple challenges.
"Once your PAN becomes inactive, the person will be restricted from doing financial transactions (where quoting of PAN is mandatory like mutual funds), subjected to TDS at higher rates and penalty under section 272B," Agarwala said.
For those who do not have access to income tax portal, the linking process is made available through SMS also, he added.
The victim, Manoj Munda has claimed that Rs 10,000 each was withdrawn from his account for 13 times in the past one month while it was only on October 17 that he came to know about such fraudulent transaction.
It has been ascertained that Manoj’s bank account has been linked with Aadhaar number of another person, who has reportedly withdrawn the money from the former’s account.
Preliminary investigation revealed that Manoj’s savings account has been linked with the Aadhaar number of one Satyabati Bag.
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“When I went to bank and withdrew Rs 60,000 and later, on inquiring balance, I learnt that already Rs 1.30 lakh was withdrawn from my account,” said Manoj.
The incident is certainly a matter of concern for other people as it has now become mandatory to link bank and PAN with Aadhaar by March 31, 2018. Earlier, the deadline for linking Aadhaar was December 31, 2017.
Bank authorities also admitted the goof-up and informed that the matter has been brought to the notice of police authorities for necessary action.
Inspector-in-charge of Koksara police station, Pradip Kumar Dharua informed that basing on the complaint filed by Manoj, the matter has been reported to cyber crime police station for necessary investigation.
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“It appears that the victim’s bank account has been wrongly linked to another person's Aadhaar number. As the matter involves lot of investigation, we have referred the case to cyber crime police,” said Dharua.
Earlier this month, the IT department had extended the deadline till August 31, but cautioned that returns would not be processed until the ‘linkage of Aadhaar with PAN is done’.
The deadline was extended as there were complaints that taxpayers were unable to link the Aadhaar number with PAN because of different names in the two databases.
Sources in the tax department said there was no move to extend the date now as enough time had been provided to link PAN and Aadhaar.
Meanwhile, UIDAI CEO Ajay Bhushan Pandey had said last week that the Supreme Court's verdict on privacy has no bearing on the requirement quoting Aadhaar for availing government subsidies and welfare schemes.
(With agency inputs)
The decision was taken after a joint meeting of Revenue department and CBDT officials held in the finance ministry yesterday.
Central Board of Direct Taxes (CBDT), the policy making body of the IT department, stated that people were facing problems to link Aadhaar with PAN because their names were mentioned differently in the database.
The deadline for filing Income Tax Returns (ITRs) for the 2016-17 financial has also been extended till August 5. The government has made it mandatory for a taxpayer to link the two databases for filing ITRs with effect from July 1.
The CBDT also mentioned that the dates have been extended on receipt of complaints from "some taxpayers" that they were unable to log on to the e-filing website of the Income Tax department.
Even if a person does not have Aadhaar, one can e-file return by quoting Aadhaar or acknowledgement number after applying for the same. The actual linking of PAN with Aadhaar can be done subsequently and only then the ITRs will be processed.
The department, this time, has also asked taxpayers to declare cash deposits made in bank accounts aggregating Rs 2 lakh or more, post demonetisation between November 9-December 30 last year, in the ITRs.
In Odisha, paan shops are found in aplenty but there are a few who specialise in Raja Paan that comes in many variants – some with normal ingredients and others with special with a silver foil packaging. And these could cost you anything between Rs 10 and Rs 50 per piece.
Here’s a glimpse of one of the paan specialists in Cuttack, who sells the much demanded freshner like hot cakes. Must watch for those who want to find what goes into the making.
In a circular issued on Monday to all the life, non-life (including standalone health insurers) the Insurance Regulatory and Development Authority of India (Irdai) said the date of submission of the Aadhaar Number and Permanent Account Number or Form 60 by clients to reporting entity is March 31, 2018.
The Irdai cited the central government's gazette notification on December 13, relating to Prevention of Money-Laundering (Maintenance of Records) (Seventh Amendment) Rules, 2017.
On November 8, the Irdai had directed the insurers to link Aadhaar and Pan Card numbers with insurance policies.
"These rules have statutory force and, as such, life and general insurers (including standalone health insurers) have to implement them without awaiting further instructions," the Irdai had said in a statement.
A bench of Justice A.K. Sikri and Justice Ashok Bhushan said that those who already possess Aadhaar number will have to link it with PAN, but it cannot be insisted upon in case of people not possessing Aadhaar card.
Holding that the said provision in the IT Act was not violative of Article 14 (Right to Equality) and Article 19, Justice Sikri pronounced the judgment and said that the new provision may be effective prospectively and not retrospectively, and the transactions already undertaken in the past cannot be reopened.
Of the total PAN-Aadhaar seeding, which is nearly 30 per cent of the total about 30 crore PAN holders, about three crore linkages were done in June and July.
"By August 5, which was the last date for filing Income Tax Returns (ITRs), over 9.3 crore PAN-Aadhaar linkages have been registered by the I-T department," he said.
According to the officer, the tally is expected to grow as the Central Board of Direct Taxes (CBDT), the policy-making body of the department, has already extended the last date for linking the two unique numbers till August 31.
The government had made the PAN-Aadhaar linking mandatory for filing ITR and obtaining a new Permanent Account Number (PAN) from July 1.
The CBDT has said that for the purpose of e-filing of returns (by August 5), it would be sufficient to quote Aadhaar or acknowledgement number of having applied for Aadhaar, on the e-filing website of the department.
"The actual linking of PAN with Aadhaar can be done subsequently, but any time before August 31, 2017," the CBDT had said.
It had also cautioned taxpayers that ITRs would not be processed "until the linkage of Aadhaar with PAN is done".
Finance Minister Arun Jaitley had recently informed the Lok Sabha that the government has not fixed any time frame to complete the linking of Aadhaar with PAN.
E-filing of ITR is mandatory for all individuals, except those earning less than Rs 5 lakh per annum and those who are above 80 years of age.
The Supreme Court had in June upheld the validity of an Income Tax Act provision making Aadhaar mandatory for allotment of PAN cards and ITR filing, but had put a partial stay on its implementation till a Constitution bench addressed the issue of right to privacy.
The CBDT had on June 10 said that the apex court's order had only given a "partial relief" to those who did not have an Aadhaar or an Aadhaar enrolment ID, and the taxman, hence, "will not cancel" the PAN of such individuals.
While Aadhaar is issued by the Unique Identification Authority of India (UIDAI) to a resident of India, PAN is a 10-digit alphanumeric number alloted by the I-T department to a person, firm or entity.
There are about 30 crore PAN numbers allotted, while Aadhaar has been alloted to about 115 crore people.
Tax lawyers are burning the midnight oil to meet the sudden upsurge in filing of income tax returns.
Some tax consultants of Kendrapara said a majority of people are filing tax return for the first time and it has helped create an awareness among the common man on financial management.
Number of applicants for PAN card is also on the rise.
Mostly non-salaried people, especially housewives, small-time businessman, contractual workers and students are applying for PAN card, a tax lawyer said.
"Since past 48 hours, I have received 30 clients who have consulted me. All of them are in possession of PAN cards.
However they were not paying income tax. Now they expressed their desire to figure in the list of tax-payers," tax practitioner Ananga Kumar Sahu said.
Sahu dealt with over 150 clients who want PAN cards.
"Our daily work has gone up manifold. We are forced to say no to clients as it s practically not possible to provide service to so many people in a short duration," Sahu said.
Tax practitioners from Paradip also said they are overloaded with professional work after the high-denomination notes were demonetised.
"We have stopped attending to old tax-related litigations of old clients. Rush for PAN card and the filing of tax return has forced us to do so. Lower income groups and non-salaried people form the bulk of such new clients," another tax lawyer, Sanosh Kumar Sahu, said.
"Acting on the advice of my husband, I have applied for a PAN card. My spouse runs a variety shop. PAN card would come in handy for depositing cash over Rs 50,000 in my bank account," homemaker 40-year-old Minati Mallik said.
19-year college student, Sandeep Tripathy from Kendrapara town said "PAN card has become a vital citizenship document.
That s why, I consulted a lawyer and have applied for it."
As people rush to deposit their old high currency notes in the wake of demonetisation, the Income Tax Department has made it mandatory for quoting of Permanent Account Number (PAN) by the depositors.
A new circular issued by the Central Board of Direct Taxes, the apex body of the Income Tax (IT) department all non-individual businesses must apply for PAN on or before May 31 of the financial year next to the one in which they have done financial transactions of at least Rs 2.5 lakh.
Earlier the businesses required to apply for the PAN only if their turnover crossed Rs 5 lakh during the financial year, an I-T department notification stated.
Even as the new norm excludes individual taxpayers, managing director, director, partner, trustee, author, founder, karta, chief executive officer or office-bearer and other such individuals of shell companies also need to apply for a PAN card, in case they don’t have one within the stipulated time.
Sources said the new rule will help income tax department track financial transactions, broaden the tax base and prevent tax evasion.
In another important development, the I-T department has ruled that quoting of father's name in PAN application forms will not be compulsory in cases where mother of the applicant is a single parent (applicant’s father is deceased or separated. The new rule will also come into effect from December 5.
Though the I-T department has not clearly stated what will be consequences someone would face if he/she fails to link Aadhaar and PAN card after the deadline, it is very likely that the person will face difficulties in filing of income tax returns. Moreover, PAN card of the concerned individual is likely to be cancelled.
It is mandatory as per a new section put under the Section 139A of the Income Tax Act that every resident of India who is eligible to obtain Aadhaar number, on or after the July 1, 2017 must quote the Aadhaar number in the application form for allotment of PAN and filing of the income tax return. In case someone does not possess Aadhaar Number, the Enrollment ID of Aadhaar application form issued to the concerned person must be mentioned in the application for PAN.
On the other hand, if you are a non-resident Indian (NRI), then you are not eligible to get Aadhaar card. But the PAN card is a must if the concerned person is having taxable income in India.
How to link Aadhaar and PAN cards:
Someone can link PAN and Aadhaar numbers on the websites of Income Tax department, NSDL and UTIITSL.
The linkage can be done through SMS, provided there is no mismatch in data. One can send an SMS to 567678 or 56161 in the following format: UIDPAN<12 digit Aadhaar><10 digit PAN>
However, if there is any mismatch in the name mentioned on the Aadhaar card and PAN card, then the linkage will fail. In these cases, the individual can change their name in either of the two databases or personally visit a PAN application center or UTIITSL for biometric Aadhaar authentication.
Meanwhile, in case of a minor mismatch of data in PAN and Aadhaar, the I-T department will undertake a verification using a one-time password (OTP) sent to the registered mobile number and link the two documents.
"Your folder is sanskaari, symbolising 'departure from slavery of western thought', but your aspirations are 3 trillion 'US DOLLARS' economy, huh hypocrite!" tweeted a user.
Finance Minister Nirmala Sitharaman announced that the government aims to increase the present $2.7 trillion economy to $5 trillion by 2025.
"Instead of making US dollar a bench mark of aspirational currency, why not work on making Indian Rupee stronger?" another user posted.
Another social media user shared the lines from an old song: "Achcha sila diya tune mere pyar ka".
The middle class literally wailed when the petrol prices shot up by Rs 2.50 per litre, diesel prices hiked up by Rs 2.30 per litre just hours after the union budget was presented.
"This has been one of the poorest budgets for common honest tax payer and middle class. You are bound to lose many supporters," a user wrote in reply to former finance minister Arun Jaitley's tweet on the budget.
"Petrol prices, diesel prices higher. What are the benefits for honest tax payers? What is the tax benefit, pension benefit, gratuity amount holding by corporate companies?? You really care for honest people (Salaried)?" another person tweeted.
The budget also announced that for I-T returns, PAN and Aadhaar cards would be made interchangeable to help tax payers file their returns.
"So 'PAN and Aadhaar will become interchangeable' is somehow a tax benefit to middle-class Indians? So, you first introduce a problem, and then increase the problem, make it more complicated, and then reduce it again (but still keep it confusing) - that somehow becomes a benefit?" a user questioned the decision.
"PAN and Aadhaar interchangeable will not help middle class," another user tweeted.
People also criticised that the issue of unemployment was not addressed seriously.
"Hopeless budget 2019... no help or news for unemployment," a tweet said.
The millennials, however, had some fun with the budget.
"So, the budget has been declared, still there is no announcement on subsidy for annual subscription of Netflix, Prime and Hotstar. Is this the India we want to live in?" posted a Twitter user.
The funny memes also kept circulating.
Depicting the "before budget" and "after budget" feelings, a meme showed Prime Minister Narendra Modi first sitting on a rock, and then lying down flat on the rock.
The images and videos of former Congress President Rahul Gandhi looking blank and later dozing off went viral.
The earlier deadline was Tuesday, December 31.
"The due date for linking of PAN with Aadhaar as specified under sub-section 2 of section 139AA of the Income-tax Act, 1961 has been extended from December 31, 2019, to March 31, 2020," it said.
The Central Board of Direct Taxes (CBDT), that frames policy for the I-T department, said a notification has been issued in this context.
Click here to link your PAN and Aadhar. Following a few simple steps, one can link PAN with Aadhar without requiring any assistance. Make sure to keep your PAN and Aadhar details along with you while following the process.
(PTI)
'If your Aadhaar is not linked then your PAN will be considered inoperative and this will have an impact on the TDS rate at the time of receiving any policy payouts', insurance companies have informed policy holders.
If PAN and Aadhaar are not linked, then the TDS rate on taxable payout will be 20 per cent as per Section 206 of the Income Tax Act 1961, effective from April 1.
PAN if not linked with Aadhaar by March 31, 2021 shall remain inoperative till such period, it is linked. Inoperative Pan means TDS will be deducted at higher rates, ITR cannot be filed and a penalty of Rs 10,000 may be imposed.
March 31 is important as it is the last date to file/revise ITR for FY 2019-20. It is also the last date of investments for deduction u/s 80C or 80D, etc. for FY 2020-21 and last date to file Q1 & Q2 TDS Returns of FY 2020-21 without late fee.
As the new financial year kicks in, from July 1, TDS at 0.1 per cent will have to be paid on purchases of more than Rs 50 lakh if turnover in financial year 2020-21 exceeds Rs 10 crore under Section 194Q.
In addition, charitable Institutions/Trusts already registered with the Income Tax Department will have to re-register themselves in 2021-22.
Income Tax Audit will not be required for FY 2020-21 for persons having turnover up to Rs 10 crore if cash component does not exceed 5 per cent of total Receipts/Payments. Payments received or made by cheque other than account payee cheques will be counted as cash component.
Also, the ITR of FY 2020-21 cannot be filed after December 31, 2021 which implies that three months less time is available as March 31 used to be the cut off date.