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These Individuals Are Exempt From This Mandate


Aadhaar-PAN Link: These individuals are exempt from this duty

PANs that are not linked to Aadhaar by the end of March 2023 will not work.

The last date to link a Perpetual Account Number (PAN) to Aadhaar is March 31, 2023. According to the income tax department, failure to do so will result in the unlinked PAN becoming inactive.

A circular issued by the Central Commission for Direct Taxes (CBDT) states that once the PAN fails, an individual will be held responsible for all consequences under the IT Act and will suffer a number of consequences.

The person will not be able to file an IT return using an inactive PAN; Pending returns will not be processed; Pending refunds cannot be issued to inactive PANs; pending procedures, such as in the case of defective returns, cannot be completed when the PAN is not active; and tax will be claimed at a higher rate.

The provisions of the Income Tax Act stipulate that everyone who has been granted a PAN is required to provide their Aadhaar number to the regulatory authority in order to be able to link Aadhaar and the PAN.

However, there are some who are reluctant. They are not required to link their PAN to their Aadhaar.

According to the 2017 announcement of Central Direct Tax Council (CBDT), the Aadhaar-PAN association requirement does not apply to these four categories of people.

  1. Individuals residing in the states of Assam, Jammu and Kashmir and Meghalaya
  2. Individuals who are Nonresident Indians (NRIs) under the Income Tax Act, 1961
  3. Individuals eighty years of age or older at any time during the previous year.
  4. A person who is not an Indian citizen.

The Aadhaar-PAN link is free before March 31, 2022. The fee of Rs 500 is applied from April 1, 2022 and then increased to Rs 1,000 from July 1, 2022.

(With input from agencies)

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