Extension of timeline for linking of PAN with
Aadhaar

The Central Board of Direct Taxes(CBDT) vide Circular No. 03 of 2023 dated 28.03.2023 has provided a further window for linking PAN with Aadhaar which have become inoperative after 31.03.2022. The earlier deadline of 31.03.2023 has been extended to 30.06.2023 with a late fee of Rs. 1,000
The consequences of PAN becoming inoperative will come into effect from 01.07.2023 which are given under Rule 114AAA of the Income Tax Rules, 1962. Such consequences are:

• The taxpayer cannot claim any refund of tax till the time the PAN of the taxpayer does not become operative.
• No interest on refund under Section 244A of the Income Tax Act, 1961 shall be granted for the period starting from 01.07.2023 till the time the PAN remains inoperative.
• TDS/TCS shall be deducted/collected at higher rates in accordance with Section 206AA / Section 206CC of the Act.

Virendra Vikram, Tax Associate, SW India