All PAN Cards should be linked to Aadhar Card by 31st December 2024 otherwise all PAN Cards will be deactivated says Gov.! :- The Indian government has provided the deadline of December 31, 2024, for all residents who are required to link their Permanent Account Numbers (PAN) to their Aadhaar. After this date, all unlinked PAN cards will become inactive which will put its users in a huge problem of not being able to file any income tax returns and other issues concerning finances.
Why linking of Aadhaar and PAN is necessary?
This is done as government tries to not only identify people during financial transactions but also to deter tax evasion. This provides greater efficiency and transparency especially with regard to income tax obligations as it allows the use of Aadhaar, a single biometric identification Centre. Failure to comply will lead to the inactivation of the PAN card issued to an individual, and this will affect activities that require a PAN like carrying out bank transactions above a prescribed limit, investing and purchasing of assets.
What Happens if PAN is not Linked with Aadhaar
In case you do not link your Aadhaar number along with PAN number before the due date, your PAN number will be made inactive with effect from January 1, 2025. As a result of this deactivation, you would not be in a position to lodge your income tax returns which may result into imposition of fines. Also, without a PAN number, an individual is likely to suffer high TDS rates and other limitations on financial transactions which is quite detrimental to a person involved in multiple monetary dealings.
How to Link Your PAN with Aadhaar
PAN can be associated with Aadhaar online through the portal of the Income Tax Department or through SMS. Here is a small tutorial:
Online Method: Navigate to the Income Tax e-filing website. Sign in and click on the option “Link Aadhaar”. Fill in the fields of PAN and Aadhaar and click on the submit option.
SMS Method: An SMS can be sent to either 567678 or 56161 containing the message in the following format: UIDPAN < PAN Number >.
For those who have not linked till now , there is a penalty of one thousand rupees to be paid in order to fill that. But there are exemptions to certain categories of persons like those senior citizens who are 80 years and above and NRIs who may not be required to link their PAN with Aadhaar.
What This Means for You
It is recommended that you link your PAN with the Aadhaar card before the deadline of December 31, so as not to disrupt financial transactions and access other services. Read further on the official website of the Income Tax Department and ask your financial advisers how to avoid problems with the law in a timely manner.
In any case, do not postpone the process of linking your PAN to Aadhaar. Such action will help you to continue enjoying financial services without any access disruption or penalties imposed as a result of government regulation.
Exemptions and Special Cases
The linkage of the PAN and Aadhaar card is compulsory for almost every citizen of India. However, there are exemptions to this rule for a few sections of the populace. It is possible that senior citizens above the age of eighty, NRIs, and a few others may be exempted from this linkage. Nonetheless, it is suggested that these provisions be availed after the confirmation of their position.
Importance for Financial Compliance
A valid PAN is required for many other financial transactions apart from filing one’s income tax returns. Some of these transactions include:
Opening a bank account or applying for one
Taking up any loans
Investing in or dealing with mutual funds or stock markets
Purchasing or designing and selling properties
A person who had his PAN deactivated would likely face challenges over these services hence the importance of linking of the PAN and Aadhaar.
How the Link Affects the Digital Initiatives of India
As it is with integrating PAN with Aadhaar, it facilitates the realization of the Digital India initiative mooted by the government, which seeks to cut down on conmen and provide a fool-proof way of keeping financial and personal records of individuals. It helps in the establishment of a common register of all citizens of any geographic area for effective governing and enhanced service delivery.
Key Notices and Due Dates
Dec 31 thus becomes the ultimate deadline to evade frantic rushes or system snags, it is best to couple PAN and Aadhaar long before that date. Also, make sure that the details in the Aadhaar, like name and date of birth, are consistent with those in the PAN to avoid glitches.
🚨 All PAN cards should be linked with Aadhar cards by December 31, 2024.
— Indian Tech & Infra (@IndianTechGuide) November 10, 2024
PAN cards will get deactivated if failed to do so: GOI. pic.twitter.com/6e3OeoUHN9
