Due date extended to link the Aadhaar card with the PAN card.
PAN to Aadhaar card linking means that if you have a PAN card and are qualifying for an Aadhaar number, or if you already have an Aadhaar number, you must notify the Income Tax Department. If you do not link your PAN to Aadhaar by March 31, 2021, your PAN will become inactive.
A PAN card is used for a variety of transactions, including opening a bank account, purchasing mutual funds or stocks, and even making cash transactions of more than Rs 50,000. All such inoperative PAN cards will, however, become operational once the PAN cardholder completes the PAN Aadhaar linking process.
In September 2018, the Supreme Court ruled that the government's flagship Aadhaar scheme is legally legitimate and that quoting the Unique Identity Number (UID) would continue to be needed for filing income tax returns and receiving a PAN. The government allowed interchangeability of Aadhaar and PAN under income tax rules in the first Budget of Prime Minister Narendra Modi's second term.
It is important for employers to ensure that the employee's PAN are linked with the Aadhaar. If an employee's PAN becomes invalid, an employer will be required to withhold tax at the higher rate of 20% or the total projected tax rate for the fiscal year. Furthermore, when the employee's PAN becomes inactive, the employer will have difficulty filing quarterly tax withholding returns.
Under the current law, it is necessary to link Aadhaar with PAN to file for IT returns. The authorities have extended the due date to link up till June 30,21.
If anyone fails to do so, a penalty of Rs.10,000/- will be charged and the PAN card will be made inoperative.
The Central Board of Direct Taxes (CBDT) urges everyone to link before the said times as one will not be able to use a PAN card for any financial transactions i.e. from opening a bank account to any other monetary benefits from governments.
Mentioned below are step by step procedure to link PAN with Aadhaar:
On the left side of the web page under Quick Links click “ Link Aadhar”
Enter PAN, Aadhar, and other required details.
Continue by agreeing to validate your Aadhaar details.
Submit your request by clicking “Link Aadhaar”
To link via the Mobile number you need to send SMS:- Type- UIDAI(space)Your Aadhaar Number(space)PAN Number and send to 567678 or 56161