Income Tax Department Extends Deadline for PAN-Aadhaar Linking
MAS Team | 29 April 2024
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The Income Tax Department has extended the deadline for linking Permanent Account Numbers (PAN) and Aadhaar Numbers for taxpayers who missed the earlier June 30, 2023 cutoff. This move provides relief to individuals facing penalties for non-compliance and offers a grace period until May 31, 2024.
 
According to income tax regulations, taxpayers must link their PAN with their Aadhaar biometric number. Failure to do so results in a higher Tax Deducted at Source (TDS) rate being applied. However, the recent circular from the Central Board of Direct Taxes (CBDT) addresses grievances from taxpayers who received notices due to short deductions or collections of TDS/TCS because of inoperative PANs.
 
The CBDT's circular, issued on April 24, acknowledges concerns raised by taxpayers regarding notices for short-deduction/collection of TDS/TCS due to inoperative PANs during transactions. In response, the CBDT has provided relief by specifying that for transactions up to March 31, 2024, and where PANs become operative (linked with Aadhaar) by May 31, 2024, deductors/collectors will not be liable to deduct/collect tax at a higher rate.
 
Failing to link PAN with Aadhaar can result in several consequences:
1. Inoperative PAN status
2. Non-issuance of pending tax refunds and interest on such refunds
3. Requirement of higher TDS deduction rates
4. Necessity of higher TCS collection rates
 
To link your PAN with Aadhaar, follow these steps:
1. Visit the Income Tax Department website: incometaxindiaefiling.gov.in
2. Click on the 'Link Aadhaar' option under the 'Quick Links' section
3. Enter your PAN and Aadhaar numbers, then click the 'Validate' button
4. Enter your name as per your Aadhaar card, mobile number, and click 'Link Aadhaar'
5. Enter the OTP received on your mobile number and click 'Validate'
 
Taxpayers are encouraged to complete the PAN-Aadhaar linking process before the extended deadline to avoid penalties and ensure compliance with income tax regulations.