The Indian government has announced the extension of the deadline for linking a Permanent Account Number (PAN) with an Aadhaar to 30th June 2023. The previous deadline was 31st March 2022, which has now been extended due to the ongoing COVID-19 pandemic.
The PAN is a ten-digit unique identifier assigned by the Income Tax Department of India to individuals and entities who pay income tax. Aadhaar, on the other hand, is a twelve-digit unique identifier issued by the Unique Identification Authority of India (UIDAI) to Indian citizens and residents.
The government has made it mandatory for individuals to link their PAN cards with their Aadhaar to file their income tax returns. This move is aimed at curbing tax evasion and creating a more transparent tax system.
Why the Deadline Extension?
The COVID-19 pandemic has affected several industries and businesses, making it difficult for taxpayers to link their PAN with their Aadhaar within the previous deadline. Therefore, the government has decided to extend the deadline to 30th June 2023 to provide taxpayers with ample time to complete the linking process.
Moreover, the government has also simplified the process for linking PAN with Aadhaar by allowing taxpayers to do it through SMS. Taxpayers can link their PAN with their Aadhaar by sending an SMS to either 567678 or 56161. The format for sending the SMS is UIDPAN<SPACE><12-digit Aadhaar><SPACE><10-digit PAN>.
Benefits of Linking PAN with Aadhaar
Linking PAN with Aadhaar offers several benefits to taxpayers, including:
- Faster Processing of Income Tax Returns: Linking PAN with Aadhaar ensures that income tax returns are processed faster, resulting in quicker refunds.
- Elimination of Duplicate PANs: Linking PAN with Aadhaar helps in eliminating duplicate PANs, which can cause confusion and errors in the tax system.
- Ease of Authentication: Linking PAN with Aadhaar provides the comfort of authentication, making it easier for taxpayers to comply with tax regulations.
Conclusion
In conclusion, the Indian government has extended the deadline for linking PAN with Aadhaar to 30th June 2023. This move aims to provide taxpayers sufficient time to complete the linking process amidst the ongoing COVID-19 pandemic. Taxpayers are urged to link their PAN with Aadhaar as it offers several benefits, including faster processing of income tax returns, eliminating duplicate PANs, and ease of authentication.