Attention all taxpayers and investors! The government of India has recently announced a penalty for not linking your PAN (Permanent Account Number) card with your Aadhaar card before 1st April, 2023. The penalty for non-compliance can be as high as Rs. 1,000, and your PAN card may become inoperative if not linked by the deadline.
The PAN-Aadhaar link is crucial for taxpayers as it helps the government to track tax evaders, and also makes the tax filing process more convenient. The link also helps in reducing the possibility of identity theft or fraud as Aadhaar has biometric authentication features.
If your PAN card becomes inoperative, it can have severe consequences. Your financial transactions may get impacted, and you may face difficulty while making investments or filing your income tax returns. Additionally, if your PAN is not linked with Aadhaar, higher TDS may be deducted from your income.
Moreover, not linking PAN with Aadhaar may also lead to higher TDS deduction. If an individual’s PAN is not linked with Aadhaar, the tax deducted at source on their income may be higher. This is because the TDS rate for individuals who have not linked their PAN with Aadhaar is 20% compared to the standard rate of 10%.
Not linking PAN with Aadhaar can have several significant consequences for individuals. For instance, if an individual’s PAN becomes inoperative due to non-linking with Aadhaar, they may not be able to open a bank account, invest in mutual funds or shares, or carry out any financial transactions that require a PAN card.
Linking your PAN with Aadhaar is a straightforward process that can be done online through the official Income Tax e-filing portal or the Aadhaar Self Service Update Portal. To link the two, you need to have your PAN and Aadhaar numbers handy, along with other personal information such as your name, date of birth, and gender.
Once you have all the required information, you can follow the simple steps on the e-filing portal or the Aadhaar Self Service Update Portal to complete the linking process. After submitting the request, you will receive an OTP (One Time Password) on your registered mobile number. Enter the OTP on the portal to complete the linking process.
It is advisable to ensure that the details on both your PAN and Aadhaar cards match before linking them. In case there are any discrepancies, it is recommended to correct them before linking the cards. In conclusion, the government’s recent notification about the penalty for not linking PAN with Aadhaar is a significant step towards ensuring tax compliance and reducing fraud. As taxpayers and investors, it is our responsibility to comply with the regulation and link our PAN with Aadhaar before the deadline to avoid any penalty