The Central Board of Direct Taxes (CBDT) has extended the due date for linking of the permanent account number (PAN) with Aadhaar from 31st December 2019 to 31st March 2020. It is now mandatory to connect your Permanent Account Number (PAN) with Aadhaar card as per a directive from the Income Tax Department or else you won’t be allowed to file your income tax returns and your PAN will become inoperative.
As per income tax laws, if your PAN is not linked with Aadhaar by the new deadline, then your PAN will become inoperative. However, it is important to remember that the government is yet to clarify the meaning of ‘inoperative’ in the laws if PAN is not linked with Aadhaar.
The due date for linking of PAN with Aadhaar as specified under sub-section 2 of Section 139AA of the Income-tax Act,1961 has been extended from 31st December, 2019 to 31st March, 2020.
Notification no.107 of 2019 dated 30/12/2019 issued by CBDT.
— Income Tax India (@IncomeTaxIndia) December 30, 2019
As per chartered accountants and other experts, if a person’s PAN becomes inoperative it will be treated as if the individual is not holding the PAN and he/she would be unable to conduct financial transactions where the quoting of PAN is mandatory. The laws also said that the PAN would become ‘invalid’ if it is not linked with Aadhaar. Moreover, an individual can link their PAN with Aadhaar either by sending an SMS to 567678 or 56161, through the e-filing website, or manually by filling a specified form at a designated PAN service center.
It is important to note that it is compulsory to link to your PAN with Aadhaar at the time of filing income tax returns (ITR).