NRI Dunia
Think Outside The Box

Centre plans to deactivate PAN not linked with Aadhaar

In a crackdown on duplicate Permanent Account Number (PAN) cards, the income tax department is likely to deactivate the PANs which are not linked with the Aadhaar number of the user by September 30.

Over 20 crore out of a total of 44 crore PAN cards are yet to be linked to respective Aadhaar numbers. “So far 24 crore PANs have been linked. We suspect that a large number of the PAN cards would be bogus or duplicate. Many people without any taxable income possess PAN card, which is not required,” said a senior official, adding that the government wants to curb the use of PAN card as an identity card.

Many cases of tax evasion using duplicate PAN cards have come to the light of the tax authorities. PAN cards issued to non-users are increasingly being used to carry out tax evasion.

The taxpayers in Assam and Meghalaya are, however, exempt from the requirement of linking PAN with Aadhaar.

Linking of Aadhaar and PAN has become mandatory after the Aadhaar judgement came in July 2017. “Maximum number of PAN-Aadhaar linkage has been done in the past one year. We expect more people to comply with the fresh deadline. Many taxpayers had raised concerns over their inability to link due to a lengthy procedure of name correction. To address the problem, we extended the last date for PAN-Aadhaar linking to September 30,” the official said.

Earlier, the Central Board of Direct Taxes (CBDT) had issued a notification as per which the last date to link the PAN with Aadhaar is September 30. Taxpayers wouldn’t be able to file their income tax returns for the current assessment year if PAN is not linked with Aadhaar.