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The deadline to link PAN with Aadhaar card is approaching near. As per the updates from the Central Board of Direct Taxes (CBDT), all users must link their PAN with Aadhaar cards before March 31, 2022. The CBDT has repeatedly postponed the deadline for linking PAN with Aadhaar until now, however, the department has also made the process easier for users.
Under the current laws, it is mandatory for one to link PAN with their Aadhaar number. Furthermore, it has been made mandatory to mention Aadhaar numbers at the time of filing an income tax return (ITR) and while applying for a new PAN to avail of monetary benefits from the government such as pensions, scholarships, LPG subsidies etc. The Centre had earlier extended the deadline of linking PAN with Aadhaar from September 30, 2021, to March 31, 2022.
With the deadline approaching, everyone is looking to link their Aadhaar to PAN Cards. Here is how to do it. It is to be noted that the PAN will become inactive if one fails to complete the process.
As per the directions of the Income Tax Department, the use of PAN card is important for several purposes. Thereafter, anyone involved in regular transactions needs to provide their Aadhaar number as well as their PAN number to the Income Tax Department. In case, one's Aadhaar number is not linked, it will result in the PAN becoming inactive and the person will not be able to carry out any kind of transactions. Further, for activating the PAN card, the person needs to link both documents.
The IT department has specifically mandated PAN-Aadhaar linking unless exempted in certain cases. Also, it is mandatory to link Aadhaar Card and PAN Card as it lets the government keep records of financial transactions that are taxable, and then can be identified. It helps in preventing tax evasion. Additionally, linking the Aadhaar card and PAN card also puts a stop to multiple PAN cards being held by an individual, in an effort to evade taxes.