June 30, the deadline to link Aadhaar and PAN Card as per the Ministry of Finance’s Department of Revenue, has passed on. Before heading over to the impact this can create in the corporate and industrial sectors, let’s understand the reason for commencing this mandate.
De-duplication of PAN Cards has always been a worrisome case for the Central Government.
As per Section 139A of Income Tax, Act 1961:
“No person who has already been allotted a permanent account number shall apply, obtain or possess another permanent account number.”
Despite having all the norms in place, it was not uncommon to see people possessing more than one PAN or multiple PAN allotted to the same person.
To tackle this problem much more efficiently, the Center made it mandatory to link Adhaar card with PAN Card.
Post the deadline, the PAN of the citizens would become inoperative, and will remain inoperative resulting in the following consequences:
No income tax refund shall be made
Interest shall not be payable on such refund (as stated above)
TDS and TCS will be deducted at a higher rate of interest
The deadline defined for linking the cards together was proposed to be 30th March 2023. Later on, in order to abide by certain compliances, CBDT extended the deadline to 30th June 2023.
Post 30th June 2023, the company’s existing supplier database (having Aadhar and PAN Cards as their identification proof) needs to be re-evaluated and re-checked to ensure no inactive or inoperative card is linked to the company’s system.
If failed to do so, this would create a haphazard situation for the companies during the tax filing, which may result in hefty penalties to be paid by the company.
And don’t be surprised if we tell you – all of this is just a matter of few hours!
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