The Income Tax Department has forwarded a message cum warning, that the Permanent Account Number or PAN Cards which are not linked with Aadhaar by the next year till March, will be referred to as inoperative.
Save Your PAN Card From Being Declared As Inoperative
“What is mandatory, is necessary. Don’t delay, link it today!” the department said in a circular.
“As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with their Aadhaar before 31.3.2023. From 1.04.2023, the unlinked PAN shall become inoperative,” it further said.
“The ‘exempt category’, according to a notification issued by the Union Finance Ministry in May 2017, are those individuals residing in the states of Assam, Jammu and Kashmir and Meghalaya; a non-resident as per the Income-tax Act, 1961; of the age of 80 years or more at any time during the previous year and a person not a citizen of India.”
A person will have to suffer lots of implications and consequences if he or she becomes inoperative, as per the circular issued by the Central Board of Direct Taxes (CBDT). That person will solely be responsible for his own actions if his or her PAN Card becomes inoperative, under I-T Act.
Here’s the list of financial operations a person cannot perform if the PAN Card becomes inoperative:
- Filing income tax returns.
- Filing revised ITR
- Verifying the already filed ITR
- Processing of pending returns.
“In addition to the above, the taxpayer might face difficulty at various other fora like banks and other financial portals as PAN is one of the important KYC (know your customer) criterion for all kinds of financial transaction,” as per the circular.