Under the provisions of the Income-tax Act, 1961 (“the IT Act”), every person who has been allotted a PAN as on July 01, 2017 and is eligible to obtain Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before March 31, 2022. On failure to do so, his PAN shall become inoperative and all procedures in which PAN is required shall be halted. The PAN can be made operative again upon intimation of Aadhaar to the prescribed authority after payment of a prescribed fee.
In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated March 29, 2022, a window of opportunity has been provided to the taxpayers up to March 31, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. As a result, taxpayers will be required to pay a fee of Rs. 500 up to three months from April 01, 2022 and a fee of Rs.1000 after that, while intimating their Aadhaar.
However, till March 31, 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the IT Act, like furnishing of return of income, processing of refunds etc. A detailed Circular No.7/2022 dated March 30, 2022 has also been issued in this regard.
After March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the IT Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers.
The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1811632