Ministry of Finance has clarified that PAN (permanent account number) can be linked to Aadhaar without paying late reimbursement if the application for Aadhaar was submitted before 1 October last year. However, this link must be completed before December 31 of this year.
There are dozens of taxpayers who have received their pan based on the registration ID of the Aadhaar application form that was submitted last year. The latter announcement is only intended for these taxpayers.
For the background, Central Board of Direct Taxes (CBDT) on April 3, 2025 ISSUED A CIRCULAR WHICH HIGHLIGHTS THAT EVERY WHO WAS ALLOTTED PAN OF ENROLMENT ID OR AADHAAR FILLED PRIDITY 1, 2024 TOHAST ATTITT Ie, Principal Director General of Income Tax (Systems) OR Director General of Income Tax (Systems) or the Person Authorized by the Said Authorities.
After this came a statement by officials from the Ministry of Finance who stated that this intimation must be made at the end of this calendar year.
“Every Person who has been allotted permanent account number on the base of Enrolment ID or Aadhaar Application Formfiled prior to October 1 Last year will intimate his/her aadhaar number to the principal director general of incomes) or the director general or innax Authorities on or Before the 31st day of December, 2025 or Such date as may be specified by the central board of direct taxes in this whatever, “A Finance said civil servant of the ministry.
It is of vital importance to note that this expansion of 31 December only applies to those cases in which PAN was assigned on the basis of Aadhaar registration -IDs. A high tax officer said that no late costs for such cases have been prescribed.
A liberal period is permitted until December 31, 2025 to such persons for connecting Pan and Aadhar. This liberal regime should be seen in the context of “the trust of the taxpayer,” the official said.
Late reimbursement applicable
It is remarkable to state that the linking of pan to Aadhaar – in usual circumstances – invites a late fee of £1,000. These include the cases in which pan and aadhaar – IDs existed but were not connected.
And those who have not yet linked their pan to Aadhaar run the risk that Pan will not work. And any refunds and interest are not paid.
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