MANDATORY TO LINK PAN WITH AADHAAR, 31 MARCH 2023


INCOME TAX:

As a citizen of a democratic country, it is our duty to execute and follow the rules and regulations exists in our country. Each citizen must pay the tax percentage imposed on him on the basis of his annual income as it the source of revenue for the government.

LINK PAN TO AADHAR CARD: (Announcement from Income Tax Portal)

According to section 138AA of Income Tax Act, 1961, the Income Tax department has announced the citizens to link their PAN with Aadhaar number before March 31, 2023.  It is compulsory to link them for every person who has been allotted a Permanent Account Number as on 1st July 2017.If the PAN is failed to get linked with Aadhar, it will become invalid after the date mentioned. Both registered and unregistered users can link their PAN and Aadhaar on the e-Filing portal, even without logging in.

REASONS BEHIND THE PROCESS:

  • It will become easy for the government to track all the transactions of the citizens who are the taxpayers.
  • The identity of any individual or any business concern making taxable transactions will be easily notified by the government through Aadhar number.
  • Illegal and fraudulent activities on paying tax cannot takes place if PAN and Aadhar get linked as all transactions are visible to the government.
  • An individual using a greater number of PAN cards leads them to get less amount of tax to be paid.  Transactions made using multiple PAN cards may also be obtained when the PAN is get linked with Aadhaar.

NOT COMPULSORY FOR?

  1. An individual who is not a citizen of India.
  2. An individual residing in the States of Assam, Jammu and Kashmir, and Meghalaya.
  3. A non-resident as per the Income Tax Act,1961, of the age of eighty years or more at anytime during the previous year.
  4. The provided exemptions are anytime modifiable depends up on the government notifications in the Income Tax Portal.

PENALTY AND FEE PAYMENT:

The fee payment for the process to be paid through e-Pay Tax function available on NSDL Portal.  It must be paid under Major Head 0021 and Minor Head 500 and AY should be 2023-24 using Challan ITNS 280. During 2022, A penalty of Rupees 1000 has been imposed for late linking of PAN-Aadhaar after March 31, 2022.

DETAILS NEEDED FOR LINKING PAN TO AADHAAR:

Valid mobile number, Valid PAN, and Valid Aadhaar number.

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