If you have not linked your Permanent Account Number (PAN) with your Aadhaar, then you must do it as soon as possible. The Income Tax Department issued an advisory on Saturday stating that those PAN which are not linked with Aadhaar by the end of March next year will be rendered inoperative.

The Income Tax Department in a tweet said 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 Aadhaar before March 31, 2023. From April 1, 2023, the unlinked PAN shall become inoperative. What is mandatory, is necessary. Don’t delay, link it today!

It further stated that CBDT has extended the deadline for linking for Aadhaar with the PAN from 31st March 2022 to 31st March 2023. You can link the Aadhaar with the PAN till 31st March 2023.

Who all are included in the exempt category?

• Individuals residing in the states of Assam, Jammu and Kashmir and Meghalaya.
• Non-resident as per the Income-tax Act, 1961.
• Individuals of the age of 80 years or more at any time during the previous year.
• A person not a citizen of India.

What will happen if PAN is not linked with Aadhaar by March 31, 2023?

• The holder of a PAN card would not be able to file an I-T return if it becomes inoperative.
• The processing of outstanding returns will also cease.
• Pending refunds cannot be granted to inoperative PANs.
• Pending proceedings, such as those involving defective returns, cannot be resolved once the PAN is inoperative.
• Tax will need to be withheld at a higher rate.
• 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.

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