As per the latest notification released on March 31, 2019, the government has yet again extended the deadline to link aadhaar with PAN by six months time to September 30, 2019, failing which PAN of the user will be rendered invalid.
The linking mandate has been introduced as per Section 139AA that requires each of the PAN holder who possesses PAN as on July 1, 2017 to link the ID with his or her aadhaar number.
Earlier there remained apprehension as the last date to link PAN and aadhaar had to be notified by the government via notification in the official gazette only and there was no gazette notification notifying the deadline of March 31 for this purpose.
So, how does PAN invalidation affect the PAN holder:
In case PAN and aadhaar are not linked by the deadline i.e. September 30, 2019, then the person will be deemed to not possess PAN and all the provisions of Income Tax Act will become applicable.
There will be penalty implication of Rs. 10,000 as per Section 292B
And more so on deposits and other investments, there will be more deduction of TDS.
Also, irrespective of the newly notified deadline, at the time of ITR filing, quoting and linking of PAN with aadhaar is a must from April 1, 2019