UPDATED: March 31, 2021 20:47 IST
The Income Tax Department has extended the last date for linking of Aadhaar cards with PAN to June 30.
The original deadline for linking Aadhaar with PAN was today. Failing to link the two by the last date would render the PAN invalid.
According to the I-T department, the deadline was extended as several people were facing difficulties in linking their Aadhaar with their PAN in light of the Covid-19 pandemic.
Earlier, the Finance Ministry had said that people who fail to complete the linking process before March 31 midnight will not only face a penalty of up to Rs 1,000 but their PAN will also become inoperative.
The penalty for not linking PAN and Aadhaar card has been added under a new section (Section 234H) of the Income Tax Act, 1961. It was notified by the government at the time of passing the Finance Bill, 2021 in the Lok Sabha on March 23.
If PAN becomes invalid or inoperative, you will not be able to conduct any financial transactions where you are required to quote it. For instance, any bank transaction above Rs 50,000 requires PAN.
You will also not be able to file income tax returns (ITR) or open a new bank account. In addition, you will have to pay higher TDS.