Till January 27, 2020, over 30.75 crore PANs were linked to respective Aadhaar. However, 17.58 crore PANs are yet to be linked with the 12-digit biometric ID
Your Permanent Account Number (PAN), a 10-digit unique identification alphanumeric code, will become inoperative if it is not linked with Aadhaar by March 31, 2020.
If your PAN is declared inoperative then you will not be able to do several financial transactions where PAN is required. There are over a dozen financial transactions where quoting of PAN is mandatory by the individual.
Transactions where quoting of PAN is mandatory include sale or purchase of a motor vehicle, opening a bank account, opening a demat account, payment in cash of an amount exceeding Rs 50,000 for hotel/restaurant bills, mutual fund unit purchase, investing in bonds/debentures, paying life insurance premium etc.
It is the statutory responsibility of a person receiving document relating to economic or financial transactions notified by the Central Board of Direct Taxes (CBDT) to ensure that PAN has been duly quoted in the documents in which quoting of PAN is mandatory. Thus, the receiver of these documents will ensure that PAN is quoted in the respective document.
The deadline for linking of PAN and Aadhaar has been extended several times and the current deadline ends on March 31, 2020. Aadhaar is a 12 digit individual identification number that serves as a proof of identity.
The CBDT, the apex policy making body for income tax, has now notified that PAN will become inoperative if not linked with Aadhaar within the aforementioned date.
“In the Income-tax Rules, 1962, after rule 114AA, the following rule shall be inserted, namely:- 114AAA. Manner of making permanent account number inoperative. (1) Where a person, who has been allotted the permanent account number as on the 1st day of July, 2017 and is required to intimate his Aadhaar number under sub-section (2) of section 139AA, has failed to intimate the same on or before the 31st day of March, 2020, the permanent account number of such person shall become inoperative immediately after the said date for the purposes of furnishing, intimating or quoting under the Act,” the CBDT notification says.
Section 139 AA (2) of the Income Tax Act says that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate his/her Aadhaar number to the tax authorities.
Till January 27, 2020, over 30.75 crore PANs were linked to respective Aadhaar. However, 17.58 crore PANs are yet to be linked with the 12-digit biometric ID.
The CBDT notification further said that persons whose PANs become inoperative will be liable for all the consequences under the I-T Act for not furnishing, intimating or quoting the permanent account number.
For those linking PAN with Aadhaar after March 31, 2020, the I-T department said it shall “become operative from the date of intimation of Aadhaar number”.
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