Every taxpayer is required to link their Permanent Account Numbers (PAN) with Aadhaar by 31 December 2019. The initiative is part of the government’s plan to link all active PAN with Aadhaar number.
The Central Board of Direct Taxes (CBDT) had earlier notified an extended date of 30 September 2019 for linking of PAN with Aadhaar. The deadline has now been extended to 31 December 2019. The CBDT had also made it mandatory to quote Aadhaar number while filing income tax returns for AY 2019-20.
Taxpayers who fail to link would have their PAN being rendered ‘inoperative’ with effect from 1 January 2020. The government has not yet clarified the impact of having rendered a PAN ‘inoperative’.
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Taxpayers use PAN for carrying out various financial transactions such as the purchase of immovable property. Taxpayers also use PAN as a photo ID proof for various transactions such as opening a bank account. Taxpayers need a valid PAN for carrying out daily financial and non-financial transactions.
A taxpayer can access the e-filing portal of the income tax department to link their PAN and Aadhaar. A taxpayer can also link their PAN and Aadhaar at https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/LinkAadhaarHome.html?lang=eng.
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I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.