How to Link PAN With Aadhaar: According to income tax rules, the taxpayer has to link his PAN with his Aadhaar number. If both these links are not there then TDS is required to be deducted at double the applicable rate.
How to Link PAN With Aadhaar: If you have not yet linked your PAN card with Aadhaar, then get it done soon. The Income Tax Department has relaxed the deadline for imposing penalty on those who could not link PAN-Aadhaar by the deadline of June 30, 2023. The Income Tax Department said that no action will be taken for short deduction of TDS if the assessee links PAN with Aadhaar by May 31. As per income tax rules, the taxpayer has to link his PAN with his Aadhaar number. If both these links are not there then TDS is required to be deducted at double the applicable rate.
In a circular issued on April 24, the Central Board of Direct Taxes (CBDT) said, “Many complaints have been received from taxpayers that they have received notices informing them that they have defaulted in ‘short deduction/collection’ while carrying out transactions Where the PAN of the deductors/collectors was inoperative, since the deduction/collection has not been made at the higher rate, TDS/TC will be levied against the deductors/collectors. S. Demands have been raised while processing the details.”
To address the grievances of such deductors/collectors, the CBDT specified that “For transactions made up to March 31, 2024 and in cases where PAN is generated on or before May 31, 2024 (with Aadhaar As a result of the linkage) becomes operational, there will be no liability on the deductor/collector to deduct/collect tax (at the higher rate).
What will happen if you do not link PAN with Aadhaar?
- Your PAN will be deactivated. This means that your PAN will no longer be valid for tax related purposes.
- If your PAN becomes inoperative, the pending tax refund and interest thereon will not be issued.
- TDS at higher rate There will be cuts. If your PAN is not linked to Aadhaar, TDS will be payable at double the rate applicable at the time of making the transaction. Will be cut.
How to link PAN with Aadhaar
- Visit the Income Tax Department website incometaxindiaefiling.gov.in.
- Click on ‘Link Aadhaar’ option in the ‘Quick Links’ section.
- Enter your PAN and Aadhaar number and click on ‘Validate’ button.
- Enter your name and mobile number as per your Aadhaar card and click on ‘Link Aadhaar’ button.
- Enter the OTP received on your mobile number and click on ‘Validate’ button.
