As per the statement given by the Income Tax Department, Permanent Account number (PAN) which are not linked with Aadhaar card would stop working from April 1, 2023.
As the tax Administration directed PAN card users to link their Aadhaar before March 31, 2022. According to the notice the tax agency informed that all PAN holders who don’t come under the exempt class must link their PAN with their Aadhaar before the end date, in conformity with the Income tax Act of 1961.
The end date is close so all Account holder are advised to quickly link their PAN and Aadhaar because, after March 31, 2023 PAN would be deemed inactive if not linked to Aadhaar.
People already know the importance of Aadhaar. In today’s time, the card is required for many financial operations that includes opening bank accounts, when making deposits into Account, starting Demat Accounts and purchasing and selling real estate.
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After linking to Aadhaar card, the inactive PAN will start functioning. Both cards can be linked in accordance with the new section 234H of the Income- tax by paying an amount of Rs 1000 on the tax department’s official website, that is www.incometax.gov.in.
All Indian public and private departments expect the PAN card as a medium of image identification. The reason why this linking of cards is necessary because the Former is biometric- based and hence it can’t be functional using any different form of identification.
As per the department statement, limiting duplicate PAN’s and enhancing tax compliance are the basic objectives of combining PAN and Aadhaar.
