PAN-Aadhaar Linking: Non Linked PAN Cards Would Become Inoperative After September 30 Deadline
On March 31, the Central Board of Direct Taxes notified 30 September deadline for linking PAN (Permanent Account Number)with Aadhaar. Failing to do so would make the PAN “inoperative” according to the new Income Tax law proposed in the Finance Bill 2019.
What does the Finance Bill 2019 say?
Union Finance Minister Nirmala Sitaraman changed the PAN-Aadhaar linking rules in the budget presented in July 2019. The new rule says that if a person fails to intimate the Aadhaar number, the PAN allotted to the person shall be made inoperative according to the rules after the notified date that is 30 September. The amendment will come into effect on 1st September 2019.
Currently the PAN-Aadhaar linking is done under Section 139AA (2) that reads that allotted PAN shall be deemed “invalid” in case not linked to Aadhaar.
What is an “inoperative” PAN?
It is clear that people won’t be able to carry out financial transactions with “inoperative” PAN. But the definition of “inoperative” is yet to be explained by the lawmakers. Experts demand clarity on what will happen to PAN if not linked to Aadhaar within the deadline.
Experts want to know
Whether PAN would be operative after it is linked to Aadhaar post deadline. Or the deadline would be extended to give a last-minute opportunity to those that failed to link their PAN with Aadhaar. But the government is yet to define the meaning and procedure of “inoperative” for PAN. But you shouldn’t wait for the deadline to get over to link your PAN with Aadhaar.