CBDT has introduced another compliance for Corporates wherein they have to deduct TDS at higher rate if a person does not have her Aadhaar-PAN linked by 31st March 2023.
Initially the CBDT had prescribed the date for linking Pan and Aadhaar as 30th June, 2022 but have extended this date till 31st March, 2023. Consequences of failure to do so are as under:
Consequences for not linking
- PAN becomes inoperative
- Higher tax rate
- Higher TDS
- Inability to file Income tax returns
- Pending returns will not be processed
- Pending refunds cannot be issued to inoperative PANs
So all the PAN holders should ensure linking of Aadhaar with their PAN and other sides business entities have to setup mechanism to verify the linking of PAN with Aadhaar and modify the TDS charging rate.
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