The Income Tax Department on Tuesday issued a notification granting taxpayers more time to complete the process of linking PAN with Aadhaar. The Income Tax Department has extended the deadline for linking PAN with Aadhaar from March 31 to June 30. The Income Tax Department on Tuesday issued a notification allowing people to link their Aadhaar with PAN by the end of June. However, from July 1, unlinked PAN will be treated as inoperative with serious consequences.
Why is it important to link PAN with Aadhaar? Let us tell you that those who fail to link their PAN with Aadhaar by July 1 will have to pay a fine of Rs 1,000 to make their PAN operative again. Further, no refund will be issued for an inoperative PAN and no interest will be payable for the period the PAN remains inoperative. Further, for those who fail to comply with the linking requirement, TDS and TCS will be deducted at a higher rate. Therefore, it is important for taxpayers to link their PAN with Aadhaar before the new deadline of June 30 to avoid any inconvenience or penalty.
