Tax Column

I am a resident individual and have forgotten to link my PAN with Aadhaar. What are the consequences of this default? Can it be rectified? 

It is mandatory for all Indian taxpayers except certain exempted categories to link their PAN with Aadhaar, the last date for which was set as June 30, 2023. If not done, the PAN will have become inoperative from July 1, 2023. The consequences of not linking the PAN with Aadhaar are serious given that you will not be able to file your Income Tax Return (ITR) nor will you be entitled for any refund if it is due to you from the IT Department. In fact, your pending returns will not be processed at all. Further, TCS or TDS will be applicable at a very high rate. For example, if you are earning interest from bank deposits, the withholding tax would be 20 per cent instead of 10 per cent.