The Ministry of Finance, in a notification dated September 28, announced that it has extended the deadline to link PAN with Aadhaar to December 31, 2019. Earlier this deadline was September 30, 2019.
This extension will come as a relief for those individuals who still have not linked their PAN with their Aadhaar.
“The CBDT granted another 3 months extension to link the Aadhaar with PAN. As per the recent amendment by the Finance (No. 2) Act, 2019, if a taxpayer does not link his PAN with Aadhaar number by the due date then the PAN of the taxpayer shall be deemed to be inoperative. A taxpayer will not be able to quote his PAN if it becomes inoperative. The dept. has not yet prescribed the manner in which an inoperative PAN shall be made operative again. Thus, in order to avoid any inconvenience which may cause to the taxpayer, the board has extended the cut-off date”, says Chartered accountant Naveen Wadhwa, DGM, Taxmann.com.
Abhishek Soni, CEO, Tax2win.in says, “Due date for linking of PAN with Aadhaar has been extended from 30.09.2019 to 31.12.2019 by CBDT . It means PAN will not become inoperative till 31.12.2019 even if it is not linked. PANs which will not linked with the Aadhaar by 31.12.2019 will become inoperative and it can not be used to enter the financial transactions where quoting of PAN is mandatory.”
If your PAN is not linked with Aadhaar by the extended deadline, then as per current laws your PAN will become inoperative. However, the government is yet to notify the implications of ‘inoperative’ in case PAN is not linked with Aadhaar.
The Central Board of Direct Taxes (CBDT) has not notified the manner in which PAN will become inoperative if not linked with Aadhaar by the deadline.
It is likely that if a person’s PAN becomes inoperative it will be treated as if the individual is not holding the PAN and he/she would be unable to conduct financial transactions where quoting of PAN is mandatory.
The rule regarding the consequences of not linking PAN with Aadhaar was revised in the Budget of July 2019. Prior to this amendment, if PAN was not linked with Aadhaar, then PAN would have become invalid. It would be treated as if you never had a PAN. The rule was revised and the word ‘invalid’ was substituted with ‘inoperative’ to protect past transactions using PAN done by the PAN card holders.
An individual can link their PAN with Aadhaar either by sending an SMS, through the e-filing website, or manually by filling a specified form at a designated PAN service centre. If you are already filing ITR (income tax return), it is likely that your PAN is linked to Aadhaar.