Aadhaar-PAN Linking and NPS Account Restriction: The Central Board of Direct Taxes has extended the deadline for linking Aadhaar with Permanent Account Number (PAN) until June 30, 2023.
While many are aware of this requirement, few know about the consequences of not linking these two identification numbers.
The Pension Fund Regulatory and Development Authority has stated that individuals who fail to link their PAN and Aadhaar before the deadline will face restrictions on transactions in their NPS accounts.
Additionally, a penalty of Rs 1000 will be imposed for linking after the deadline. It is crucial to take advantage of the government-provided facilities in a timely manner.
Loss of Benefits and Inactive Cards:
Failure to complete the linking process by June 30 will result in the denial of benefits related to business and tax activities.
The Chairperson of the Central Board of Direct Taxes (CBDT), Nitin Gupta, mentioned that several crore PANs are yet to be linked with Aadhaar,
but it is anticipated that this task will be accomplished by the deadline.
The government has made the linking of PAN with Aadhaar mandatory and declared individual PANs inactive if not linked by June 30, 2023.
Furthermore, a fee of Rs 1,000 will be charged for linking PAN with Aadhaar after the given date.
Deactivation of Cards for Non-Compliance:
The CBDT chief emphasized that numerous awareness campaigns have been conducted to promote the linking of PAN with Aadhaar, and the deadline has been extended multiple times.
Failure to link PAN with Aadhaar by the due date will render the PAN invalid, thereby preventing individuals from accessing tax benefits after March.
According to a circular issued by the CBDT last year, individuals with an inoperative PAN will face consequences prescribed under the Income Tax Act,
such as non-filing or non-processing of pending tax returns. Additionally, the government’s decision to use PAN as a common identifier in digital systems of government agencies,
as announced in the budget by Finance Minister Nirmala Sitharaman, will be beneficial for the business world.
