The Income Tax (I-T) Department has announced that those PAN (Permanent Account Number) cards that are not linked to Aadhaar will become inoperative from April 1, 2023. The tax department has asked people to link their Aadhaar with their PAN by March 31, 2022.
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 March 2023, the tax department said.
The department further stated that from April 1, 2023, the unlinked PAN will become inoperative. “The last date is approaching soon. Don’t delay, link it today!”.
The PAN card, which is necessary for making a number of financial operations, such as creating bank accounts, depositing money into them, opening Demat accounts, and buying and selling real estate, if not linked to Aadhaar, will be termed invalid.
The deactivated PAN will become active once it is linked to Aadhaar.
As per the new Section 234H of the Income-tax Act, a person can link a PAN card with Aadhaar by paying a fee of Rs 1000 on the tax department’s website, www.incometax.gov.in.
The PAN card is a picture identification method recognised by all Indian governmental and non-governmental departments. Linking Aadhaar and PAN cards is necessary for the income tax department because the former is biometric-based and cannot be obtained based on any other identifying paper.
As per the department, the main objective behind linking PAN and Aadhaar is to reduce the number of duplicate PANs and improve tax compliance.