The earlier deadline for linking PAN and Aadhar cards was March 31, 2023. Recently, this deadline has now been extended to June 30, 2023. However, the penalty requirement still applies throughout this time. A Rs 1,000 fee will be imposed on you for linking your PAN and Aadhaar. However, some citizens of the nation do not require the PAN-Aadhaar card to be linked at all. Therefore, they shouldn't be concerned about whether the deadline is extended.
Who does not need to link a PAN-Aadhaar card?
Every person in the nation who received a Permanent Account Number (PAN) on July 1, 2017, and qualified to receive an Aadhaar number, must link their Aadhaar with their PAN card by section 139AA of the Income Tax Act. In other words, by June 30, 2023, such individuals must mandatorily link their Aadhaar and PAN with late fee payment. However, some individuals do not fall under this requirement.
Aadhaar-PAN linking is not required for these individuals:
>> Residency of Meghalaya, Jammu & Kashmir, and Assam;
>> According to the Income Tax Act of 1961, is a non-resident;
>> Had at any point in the past year been eighty years of age or older; or
>> They are not Indian citizens.
What will happen if PAN-Aadhaar is not linked?
If PAN cardholders who do not fall under this category do not link their PAN with their Aadhaar by June 30, 2023, their PAN card will expire on July 1, 2023, by the Income Tax Act of 1961.
>> Using his inactive PAN will prevent him from filing an ITR.
>> Unable to process pending returns.
>> On this PAN, refunds that are also pending won't be given out. Once the PAN goes inactive, the processing that was in progress cannot be finished.
>> Tax will also be withheld at a higher rate if PAN has become inactive.