CBDT extends PAN–Aadhaar linking deadline, imposes fee

The Central Board of Direct Taxes (CBDT) has extended the deadline for linking PAN and Aadhaar by another one year till March 31, 2023. However, those linking PAN and Aadhaar from April 1, 2023 will have to pay fees for doing so, while the PAN will remain operational.

Under the provisions of the Income Tax Act, 1961, every person who has been allotted a PAN as on July 1, 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," the CBDT said in a release.

"In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated 29th March, 2022, a window of opportunity has been provided to the taxpayers up to 31st of March, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions," the release added.

"As a result, taxpayers will be required to pay a fee of Rs 500 up to three months from 1st April, 2022 and a fee of Rs 1000 after that, while intimating their Aadhaar," CBDT added.

"However, till 31st March, 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc," the department said.

"After 31st March, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers," it added.