The last day of PAN-Aadhaar linking is near and must be done before Sunday, March 31 according to the Income Tax Department of India. Not linking it might lead to financial issues with your PAN number becoming invalid.
Here are 3 consequences that can occur if you fail to link PAN with Aadhar UID in the next 3 days
- Unable to file IT return
Income tax act Section 139AA allows a taxpayer to link his/her PAN with Aadhaar in order to file Income Tax Returns. Thereby, you may not be able to file your ITRs if your PAN is not linked with your Aadhaar UID. And not filing your ITR will have its own set of setbacks from the Income Tax Department including a penalty of Rs.10,000 for late filing of ITRs later.
- Unable to get IT refunds
On the official website, The Central Bureau of Direct Taxes (CBDT) has clearly notified that to process any e-Refund it is mandatory to link your PAN with your Aadhaar. So all your tax planning, claiming tax exemptions to get a hefty Income Tax Refund against Tax Deducted at Source (TDS) can come to a halt if your IT refund is not processed in the first place.
- Unable to deduct tax
If your PAN is invalid, you may not be able to deduct taxes under Section 194-IA and 194-IB against tenancy, lease or sublease, which can further attract the ire of income tax authorities.
Here’s how you can link PAN with Aadhar
Step 1 – Visit the Income Tax Department’s e-filing portal – https://www.incometaxindiaefiling.gov.in/home
Step 2 – Click on ‘Link Aadhaar’ tab from the left sidebar
Step 3 – Enter your Permanent Account Number (PAN), Aadhaar Number, Name as per Aadhaar, captcha code and click on Link Aadhaar
The linkage is done!