The Income Tax Department had multiple times extended the deadline to link PAN and AADHAAR from the original deadline of July 2017.
The deadline to link PAN and AADHAAR is now June 30, 2021. The new guidelines have come in under Section 234H of the Income Tax Act 1961 as per Finance Act 2021. The latest extension comes as a huge relief for those who have not linked their PAN with AADHAAR yet, especially with the filing season around.
For individuals who fail to do this, the PAN will get inoperative and they will be liable to pay a penalty not less than Rs. 1000.
An individual will not be able to perform financial transactions such as opening bank accounts, making cash deposits, opening DEMAT accounts, transacting in securities and immovable properties if the PAN becomes inoperative.
It is mandatory to quote the Aadhar number at the time of filing income tax returns, applying for a new PAN card to avail monetary benefits from the government such as a pension, scholarship, and LPG subsidy. An individual can link his / her PAN with AADHAAR either by sending an SMS to 567678 or 56161, through the E-filing website, or manually by filling a specified form at a PAN service center. If you have already filed your ITR, it is likely that your PAN is already linked t