As per the latest guideline of Income Tax Department, the last date to link 12-digit biometric number Aadhar with PAN is scheduled on March 31, 2023. Those who fail to link, their PAN will become inoperative from June 30, 2023.
There are number of benefits when linking PAN to Aadhar, as these are important for KYC at opening bank accounts. These also helps in filing easier income tax returns among others.
Income Tax department made it compulsory to have a PAN from 1st July, 2017 and who is eligible to obtain an Aadhar Number. Such persons should mandatorily link Aadhar with their PAN before the deadline.
Linking is required for legal aspects as it provides multiple benefits, which are:
- Linking provides an audit trail for all transactions to the Income tax department.
- ITR filing will not be allowed if your Aadhar is not linked with PAN
- It can help in cancellation of the latter
- With the use of Aadhar, the requirement of other documents are reduced to large extent.
- It serves as an identity and an address proof
But, there are some exemptions to this mandatory rule:
- A person who isn't a citizen of India
- A non-resident person
- A person who is of the age of 80 years or more during relevant previous year
- Resident of non-eastern states