Out of 70.24 Crore PAN Cards, the CBDT has deactivated 11.5 Crore because they were not linked with Aadhaar

In response to a Right to Information (RTI) request, the Central Board of Direct Taxes (CBDT) revealed that approximately 11.5 crore PAN cards were deactivated because they were not linked to Aadhaar cards by the specified deadline, as reported by The Hindu.

According to Income Tax regulations, it is compulsory to link PAN and Aadhaar, and the deadline for this linkage was June 30, 2023.

The deadline for linking PAN (Permanent Account Number) with Aadhaar cards was on June 30 this year. Out of the 70.24 crore PAN card holders in India, 57.25 crore have successfully linked their cards with Aadhaar, as reported by a newspaper. However, nearly 13 crore individuals who have not linked their PAN with Aadhaar have faced consequences—11.5 crore PAN cards have been deactivated, according to information obtained through an RTI (Right to Information) request.

For those who received PAN cards after July 1, 2017, the linking process with Aadhaar was automatic. However, individuals with PAN cards issued before that date had to manually link them, following the rules of sub-section (2) of Section 139AA of the Income Tax Act.

The Central Board of Direct Taxes (CBDT) clarified that linking PAN and Aadhaar was required by a specified date; otherwise, the PAN would become inoperative. Additionally, Section 234H of the IT Act imposes a fee on individuals who have not linked their PAN with Aadhaar. To reactivate a deactivated PAN card, the CBDT has set a penalty of Rs 1,000.

Critics argue against this penalty, highlighting that the cost of obtaining a new PAN card is Rs 91, excluding GST. They question the government's imposition of a tenfold fine for reactivating the PAN card. Sources have further suggested that the government should reconsider and extend the time limits, giving people at least a year to link PAN with Aadhaar.

Also Read: Union Budget 2023: What To Expect & Where You Can Watch It Live

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