The deadline to link PAN with Aadhaar has been extended by three months from June 30, 2021 to September 30, 2021, according to an official announcement made by the Minister of State for Finance and Corporate Affairs Anurag Thakur through his Twitter account. Due to the second phase of the coronavirus epidemic, the timeframe for linking PAN and Aadhaar has been extended, according to Anurag Thakur. For individuals who have yet to link their PAN with Aadhaar, this extension is going to be a major surprise.
According to Section 139AA each and every taxpayer are mandated to furnish their Aadhaar number while filing their income tax return. As a result, if you will subject to a penalty of up to Rs 1,000 if you do not link PAN with Aadhaar on or before the deadline. A penalty shall be imposed in accordance with the newly introduced section 234H of the Income-tax Act of 1961. The new legislation was inserted by the ministry with the adoption of the Finance Bill, 2021. If a person fails to provide PAN or provides an invalid PAN, he or she may be subject to severe consequences such as additional TDS or TCS. Not only you will face higher TDS you will also not be able to file your income tax return and can't certain financial transactions such as opening a savings or fixed deposit account, redeeming mutual fund units, opening a demat account and etc.
Relief to Income Tax Payer— Anurag Thakur (@ianuragthakur) June 25, 2021
✅Time to invest in residential house for tax deduction extension for more than 3 months.
✅PAN Aadhar Linking Extension of 3 months
✅Vivad se Vishwas Payment without interest - extension by 2 months from 30th June to 31st August https://t.co/xRz1SxfzKS pic.twitter.com/hEOLqXzGHh
Once a PAN card becomes invalid, your savings account is classified as an 'Incomplete KYC Account.' And with an invalid PAN if an individual earns interest on a savings account more than Rs 10,000, the applicable TDS (Tax Deduction at Source) rate is 20%, whereas you can lower the TDS rate to 10% by furnishing your correct or invalid PAN which is linked with Aadhaar. If a person deposits Rs 50,000 or more using an invalid PAN card, the Income Tax Department has stated that the holder may be penalised up to Rs 10,000 under Section 272B of the Income-tax Act. As a conclusion for taxpayers and bank account holders, it is a must to link their PAN with Aadhaar on or before the new extended deadline September 30, 2021 to avoid unwanted hassle while filing an income tax return or making any banking transactions. In its recent tweet, Anurag Thakur has also made some other extensions such as:
- "Time to invest in residential house for tax deduction extension for more than 3 months."
- "PAN Aadhar Linking Extension of 3 months"
- "Vivad se Vishwas Payment without interest - extension by 2 months from 30th June to 31st August"
- "We are announcing impt measures related to Tax Concessions for Payment towards COVID Treatment/Death."
- "Easing of IT Compliance Burden during COVID."
- "And additional Relief Measures for Income Tax Payers have been taken."
Important announcements related to @IncomeTaxIndia— Anurag Thakur (@ianuragthakur) June 25, 2021
✅We are announcing impt measures related to Tax Concessions for Payment towards COVID Treatment/Death.
✅Easing of IT Compliance Burden during COVID.
✅And additional Relief Measures for Income Tax Payers have been taken. pic.twitter.com/NxqsOJRa0Y