New Delhi: September 30, the deadline for linking your PAN with your Aadhaar is just a few days away. If you have not linked your PAN with Aadhaar yet then you should do it immediately without fail as missing this deadline will mean that your PAN will become inoperative from October 1.
Worth mentioning here is that the Income Tax department has made PAN-Aadhaar linking mandatory without which PAN might be declared inoperative by the tax department.
Invalid PAN will have serious implications on your day-to-day life as it implies you never had PAN. Once your PAN becomes invalid, you may not be able to use it for making financial transactions till you link it to Aadhaar. But it may be noted that the government is yet to define what inoperative PAN means.
“If your PAN is not linked with your Aadhaar, then from October 1 onwards your PAN will become inoperative. The change was announced in the recent Budget to protect the previous transactions done by you using your PAN,” a leading business daily quoted Gopal Bohra, Partner, NA Shah Associates, as saying.
In the last budget presented on July 5, the government has amended the PAN-Aadhaar linking rules. The budget document said, “In order to protect validity of transactions previously carried out through such PAN, it is proposed to amend the said provision so as to provide that if a person fails to intimate the Aadhaar number, the PAN allotted to such person shall be made inoperative in the prescribed manner.”
“There is no clarification from the government about what will happen if the PAN becomes inoperative. It is likely that the consequences will be similar to not holding the PAN and in that event, you will not be able to undertake any specified financial transactions where quoting of PAN is mandatory,” Bhora further said.
Although in the past the deadline to link PAN with Aadhaar has been extended multiple times, experts say, it is unlikely that the deadline will be extended further.
Worth mentioning here is that having Aadhaar number is important as with PAN and Aadhaar becoming interchangeable, people who do not have PAN can now file ITR by quoting their Aadhaar number and also use it wherever they are required to quote PAN. The income tax department has also said it will auto-issue PAN cards in all such cases.