PAN will be inoperative if you don’t link it with your Aadhaar by March 31, 2023
The Income Tax department has made it mandatory to link the Permanent Account Number or PAN with the Aadhaar number by March 31, 2023. Every person who has been allotted a PAN as on July 1, 2017, and is eligible to obtain an Aadhaar number, is required to intimate his Aadhaar to the prescribed authority within the deadline.
If you fail to link your PAN and Aadhaar within the deadline, your PAN will become inoperative from April 1, 2023. “After 31st March 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers,” the Central Board of Direct Taxes (CBDT) said in a notification on March 30, 2022.
Once the PAN becomes inoperative, you will not be able to use it for various financial transactions where quoting PAN is mandatory. This includes the opening of a bank account, filing income tax refund using PAN, claiming an income tax refund, investing in stocks, mutual funds, etc.
Further, you need to pay tax at a higher rate if PAN becomes inoperative, said CBDT. PAN is one of the documents that is used for know your customer (KYC) in various places such as banks. You cannot use an inoperative PAN as your KYC.
A late fee of Rs 1,000 will be applicable to link PAN and Aadhaar.
Advance tax: Deadline is March 15, 2023
The last date for paying the fourth instalment of the advance tax payment for the financial year 2022-23 is March 15, 2023, according to the Income Tax department. As per section 208 of the Income-tax Act, 1961, every person who has an estimated tax liability of Rs 10,000 or more after deducting Tax Deducted at Source (TDS) for the year needs to pay tax in advance in the form of advance tax. Advance tax is required to be paid in instalments during the same financial year.
If the last day for payment of any instalment of advance tax is a day on which the banks are closed, then the taxpayer should pay the advance tax on the immediately following working day, said the Income Tax department.
Individuals, having only salary income are not required to pay advance tax as the liability to deduct and deposit tax is on the employer.
A resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or the profession is not liable to pay advance tax, according to the tax department.
A taxpayer who has opted for the presumptive taxation scheme of section 44AD or section 44ADA is liable to pay 100 per cent of advance tax by March 15.
Pradhan Mantri Vaya Vandana Yojana is available till March 31, 2023
Pradhan Mantri Vaya Vandana Yojana (PMVVV) is an investment scheme that offers regular income to senior citizens. The last date to invest in this scheme is March 31, 2023.
At present, Pradhan Mantri Vaya Vandana Yojana offers an interest rate of 7.4 per cent per annum. It has a tenure of 10 years. The interest rate remains the same for the entire tenure of 10 years.
Anyone above 60 years of age can opt for this scheme. The scheme offers pensions on a monthly, quarterly, half-yearly, and yearly basis. A senior citizen can invest a maximum amount of Rs 15 lakh in PMVVY. Do note that the pension is fully taxable in the hands of investors.
Plan your tax-saving investments by March 31, 2023
Those who are planning to opt for the old tax regime for the financial year 2022-23 must complete their tax-saving investments before March 31, 2023. Taxpayers can claim various deductions for their investments under the old tax regime. One of the most popular deductions is section 80 which allows a taxpayer to claim a deduction of up to Rs 1.5 lakh for various investments including premiums of life insurance policies, PPF, and ELSS among others. Some other popular deductions are section 80D (premiums paid for health insurance policies), and section 80CCD (1b) which allows an additional deduction of Rs 50,000 for investing in the National Pension System (NPS).
Do remember that you will not be able to claim deductions for tax-saving investments under the new income tax regime.