Linking of PAN-Aadhaar Last Extended Date 2023; Will it be extended again?

As the deadline for linking Permanent Account Numbers (PAN) to Aadhaar approaches, there has been some demand to extend the deadline once more. However, an extension of the deadline for PAN-Aadhaar link is not likely this year.

The Central Board of Direct Taxes (CBDT) has previously extended the PAN-Aadhaar linking deadline multiple times. Users who have yet to link both numbers can do so before March 31, after which their PAN will become inactive on April 1, 2023.

Because the PAN is such a crucial document for tax and other banking-related chores, all users must finish the connection process before the deadline to avoid any problems in the future.

A top official was quoted earlier as indicating that there were no plans to extend the PAN-Aadhaar connecting deadline. However, the official did not rule out the potential of a last-minute modification.

Why PAN-Aadhaar Link is Important?

The linkage of PAN and Aadhaar is also part of the Know Your Customer (KYC) regulations for several financial services and investments.

The PAN-Aadhaar connecting activity is intended to halt PAN de-duplication. It will also aid in the detection of fraudulent PANs, as several PANs have been allotted to single individuals in the past.

Individuals will be unable to file Income Tax Returns if their PAN becomes invalid. In addition, any outstanding ITRs and Income Tax Refunds will not be processed. Furthermore, persons filing ITRs without a PAN are forced to pay greater taxes.

Even in securities markets, having a valid PAN is mandatory for all participants, according to SEBI regulations.

Who is not required to link PAN-Aadhaar?

PAN-Aadhaar linkage is not required for residents of Assam, Jammu & Kashmir, and Meghalaya. Non-residents, as well as people above the age of 80, are excluded.