New Delhi: The Union Government on Friday extended the deadline for linking PAN with Aadhaar by three months till September 30, 2021. The previous deadline was June 30. Announcing the decision over Twitter, MoS Finance Anurag Thakur said the government has taken this decision to provide relief to income tax payers.
In March, the income tax department said it had received representations from taxpayers that the last date for seeding the Aadhaar number may further be extended in the wake of the on-going COVID-19 pandemic. Accordingly, the department extended the deadline to June 30, 2021.
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PAN is a ten-digit alphanumeric identifier, issued by Income Tax Department. Each assessee (individual, firm, company, etc.) is issued a unique PAN. Whereas, Aadhaar number is a 12-digit random number issued by the UIDAI to the residents of India after satisfying the verification process laid down by the government.
At present, PAN is mandatory to avail a host of financial transactions including the opening of bank accounts, cash deposits in bank accounts, the opening of Demat accounts, transaction of immovable properties and dealing in securities. Aadhaar is biometric-based and cannot be obtained based on any other identification document, linking the two is considered crucial for tax administration.
According to the Union Budget 2021-22, one who does not link one's PAN with Aadhaar before the deadline has to pay a penalty up to Rs 1,000.
