The government has proposed a new rule to link your PAN with your Aadhaar number from March 2023.
According to the new rule, all individuals who have not yet linked their Aadhaar with their PAN will have to do so by March 2023. This means that those who do not link their PAN and Aadhaar will not be able to pay taxes under the Income Tax Act, of 1961.
This new rule will bring India’s compliance level with the Income Tax Act, of 1961 to 99%. The Income Tax Department has made it mandatory for all taxpayers to link their PAN with Aadhar by March 2023. This will help in the prevention of identity theft and fraud. The government has also made it mandatory for taxpayers who have not yet linked their PAN with Aadhar to do so before March 2023, failing which they will be penalized Rs 50,000 per year.
With this new rule, there will be fewer chances of identity theft and fraud. In case you need any assistance regarding this matter or if you have any queries related to it, feel free to reach out to us.
The new ruling of the Supreme Court has made it mandatory for all Indians to link their PAN with their Aadhaar. With this ruling, anyone who has not linked their PAN with Aadhaar will have to do so before March 2023. The government has also promised that those who have already linked their PAN and Aadhaar will not be penalized in any way.
The government has also announced a new e-wallet for transactions above Rs 1 lakh. This wallet will help people avoid making trips to bank branches or ATMs to exchange money. The e-wallet can be used at any bank branch or ATM across India, except ATMs operated by private companies such as HDFC Bank and ICICI Bank.
To access the e-wallet, one must first register on the Income Tax Department’s website (www.incometaxindiaefiling.gov.in) and then link their PAN number with an Aadhaar number using an authorized identity proof like a passport or driving license which contains biometric information such as fingerprint scan or iris scan data (only for those who have enrolled for biometric authentication).
Once done, users can withdraw money from any bank account in India without having to visit any bank branch
The government has announced that a PAN card would not be mandatory for filing returns and applying for a tax credit from July 1, 2020, onwards. However, the Aadhaar card would still be required for filing returns and applying for a tax credit to avail of benefits under the Direct Benefit Transfer (DBT) scheme.
Under DBT, the central government transfers funds directly into the bank account of beneficiaries who have applied for a bank loan or bond. The government has also started testing the use of a biometrics-based authentication system to authenticate beneficiaries using their Aadhaar numbers in case they are unable to provide their PAN number as identity proof.
However, some people like NRIs who do not have Aadhaar numbers and children below 5 years old who do not have an Aadhaar number cannot avail of this facility.
The Income Tax Department has said that the PAN (Personal Account Number) will have to be linked to Aadhaar from March 2023. The government has already made the provision for this in the Income Tax Act. This means that all existing PAN holders will have to link their PAN with their Aadhaar from this year itself.