What if PAN is not linked with Aadhar by 31st Mar:
if a taxpayer having PAN and who is eligible to obtain Aadhaar, does not link his PAN with Aadhaar on the Income Tax portal, within 31.03.2023 he/ she shall be liable to all the consequences under the Act, in addition to PAN remaining inoperative as per Sec 139AA of the Income Tax Act.
Rule 114AAA of the Income-tax Rules provides that if PAN of a person has become inoperative, he will not be able to furnish, intimate or quote his PAN and shall be liable to all the consequences under the Act for such failure.
Following is the possible consequence:
The person shall not be able to file 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.
Tax will be required to be deducted at a higher rate as PAN becomes inoperative