The Income Tax Department said that permanent account numbers (PAN) cards that are not linked to Aadhaar by the end of March 2023 would be deemed inoperative. This advisory was issued by the Income Tax Department recently. According to the Income-tax Act of 1961, it is required for all PAN holders who do not fall under the exempt category to connect their PAN cards with their Aadhaar by March 31, 2023.
Individuals residing in Assam, Jammu & Kashmir, and Meghalaya; a non-resident under the Income Tax Act of 1961 who was 80 years old or older at any time during the preceding year and was not a citizen of India are excluded from this according to a notice issued by the Union Finance Ministry in May 2017.
A PAN card is required for a variety of financial transactions such as opening bank accounts, putting money into them, opening Demat accounts, and buying and selling real estate, and if the process is not completed the card will be considered invalid. As per the new regulations a PAN card may be linked to Aadhaar by paying Rs.1000 on the tax department's website.
The income tax agency requires linking Aadhaar and PAN cards since the former is biometric-based and cannot be obtained using any other identifying document. According to a circular published by the Central Board of Direct Taxes (CBDT) on March 30, if a PAN becomes inoperative, the individual is liable to all consequences under the I-T Act and would face a range of penalties. Furthermore, if you intend to do a financial transaction worth more than Rs 50,000, you must link your Aadhaar card to your PAN card.
Link your PAN card to Aadhaar with these steps: