In view of the challenges faced by taxpayers in meeting the regulatory compliance requirements across sectors due to the outbreak of COVID-19), the Central Board of Direct Taxes (CBDT), on Wednesday, extended the deadline for linking PAN card with
Aadhar card to March 31, 2021.
Aadhar card to March 31, 2021.
Earlier this year in March, Finance Minister Nirmala Sitharaman announced that the deadline to link Personal Account Number (PAN) with Aadhaar was extended to June 30, 2020, from the earlier deadline of March 31, 2020.
The government first brought in an ordinance --Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on March 31 extending various deadlines such as Income Tax-Return (IT-R) for FY20 (Assessment Year 2020-21) till June 30. The same has also been extended further to 30th November 2020 in a notification issued.
Income Tax Department tweeted :-
Major relief for taxpayers!
CBDT issues Notification no S.O. 2033(E) dated 24th June, 2020 on Taxation & Other Laws, further extending the time limits for various compliances. Notification to come into force from 30th June, 2020 & is available at: http://egazette.nic.in/WriteReadData/2020/220145.pdf
These measures are majorly aimed at giving relaxations to the country's salaried individuals in the face of global disruption caused by the pandemic and subsequent job losses.
Linking PAN, Aadhar mandatory
Linking the PAN card with Aadhar card is mandatory and it risks becoming inoperative if not done by the stipulated deadline. Once the PAN the users will not be able to use the PAN card for crucial tasks like filing income tax returns.
Not linking the documents may even attract a penalty of Rs 10,000 to the user as per Section 272B of the Income Tax Act. Some of the few functions of PAN card include for withdrawing or depositing cash above Rs 50,000, as ID proof, opening bank account, applying for driving licence etc.
Complications may arise if the bank account opened using a non-functional PAN has transactions that bring it under the purview of income tax.
