The income tax department on Saturday said it is mandatory to link permanent account numbers (PAN) with Aadhaar before March 31, 2023. It added that the unlinked PAN will become inoperative from April 1, 2023.

“As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar before March 31, 2023.

When it is comes to your financial transactions and identity proof, PAN Card and Aadhaar card are the two most important documents.

The Government of India had made the linking of the two documents mandatory for all citizens. While the last date for PAN-Aadhaar linking was March 31, 2020 earlier, the Centre had extended it to March 31, 2023.

However, there still are many citizens who haven’t linked their PAN with Aadhaar, in view of which the Income Tax department Saturday issued an advisory.

You can link the Aadhaar with the PAN till 31st March 2023. You will be required to pay a fee of Rs. 500 till 30th June 2022 and fee of Rs 1000 from 1st July 2022."

After April 1, 2023, the person shall not be able to file I-T return using the inoperative PAN; pending returns will not be processed; pending refunds cannot be issued to inoperative PANs

pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative and tax will be required to be deducted at a higher rate.