CBDT extends due date to link PAN with Aadhaar to March 2022; Here's all you need to know

The deadline for linking the Aadhaar card and PAN card has been extended again. According to a recent statement by the Central Board of Direct Taxes (CBDT), the time limit for linking one's PAN card with biometric ID Aadhaar has been extended till March 2022. Earlier, the last date for linking both the documents was set at 30 September 2021. However, keeping in mind the COVID-19 situation, the CBDT has taken the decision to decrease complications for citizens.

This six-month extension will help those stakeholders who are suffering the most in this situation and thus provide sufficient time to everyone. The CBDT has also extended the due date for completion of penalty proceedings under the Income Tax Act from 30 September 2021, to 31 March 2022, followed by the extension of the due date for issuing of notice and passing of the order by the Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1998. 

Why is linking PAN card with Aadhaar mandatory?

As per the directions of the Income Tax Department, the use 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.

How to link PAN and Aadhaar number?

For linking the Aadhaar number with a PAN card, one needs to go to the e-filing website of the Income Tax Department where all the necessary details are provided. By filling in the required details and information, anyone can easily apply for the linking process.

(Image: PTI)