PAN-Aadhar Linking: Rush! September 30 deadline is nearing

PAN-Aadhar Linking: Rush! September 30 deadline is nearing

PAN numbers not linked to Aadhaar will become inoperative after Sept 30

FPJ BureauUpdated: Friday, September 27, 2019, 03:19 PM IST
article-image

By September 30, if your Pan Card is not linked to your Aadhar card then it will become invalid and cannot be used for any financial transactions. While PAN card is a 10-character alpha-numeric identity issued by the Income Tax Department, Aadhaar card is a 12-digit unique identity issued by the Unique Identification Authority of India (UIDAI).

The Supreme Court’s judgement on Aadhaar, has made it clear that if a person holds both Aadhaar and PAN, then linking them is mandatory. If the assessee does not has an Aadhaar number, then PAN would not be considered invalid. However, if an assessee holds an Aadhaar number, it should be intimated to the Tax Department.

The PAN number essentially helps the tax department to identify the person or company in a transaction. Currently, under Section 139AA (2), PAN number allotted to a person shall be deemed to be ‘invalid’ in case the person fails to link it to the Aadhaar number.

Further, if a person fails to intimate the Aadhaar number and link PAN with Aadhaar, the PAN card will be made ‘inoperative’. Inoperative means that a person or company will not be able to use the PAN card for financial transactions. However, officially the government is yet to define the meaning of inoperative. Also, the government has not yet clarified whether the inoperative PAN card will be valid after they are linked to the Aadhar card post the deadline.

The deadline to link PAN with Aadhaar by September 30 was notified by the Central Board of Direct Taxes (CBDT) on March 31, 2019. The budget presented by Finance Minister Nirmala Sitharaman in July 2019, changed the PAN-Aadhar linking rules. The latest rules have been cited under the new Income tax law that was proposed in the Finance Bill 2019.

The Finance Bill says, "It is proposed to amend the said proviso so as provide that if a person fails to intimate the Aadhaar number, the permanent account number allotted to such person shall be made inoperative after the notified date in the manner as may be provided by rules. This amendment will take effect from 1st September 2019."

According to experts, there is no clarity on what will happen if the PAN Card is not linked to the Aadhar Card within the stipulated time.

After the PAN card becoming inoperative, you will be deemed to not holding a PAN card and will not be able to undertake any transactions where quoting PAN number is mandatory.

RECENT STORIES

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu..."; Here's How To Save...

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu...

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...