A PAN card is a crucial document in India. Without it, many of your income tax and banking tasks can come to a halt. Having a PAN card is essential for completing these tasks. The Government of India has also established certain rules regarding PAN cards that must be followed; otherwise, you could run into issues.
It’s now mandatory for all PAN card holders in India to link their PAN with their Aadhaar card. If you haven’t done this yet, you might encounter some problems. Let’s discuss the potential issues that can arise if your PAN card isn’t linked to your Aadhaar.
Your PAN card could become inactive. The Government of India has made linking PAN to Aadhaar compulsory. If you haven’t linked them yet, you could face significant challenges. An inactive PAN card means you won’t be able to use it for any transactions or financial activities. This issue will persist until you link your PAN with your Aadhaar.
You won’t be able to file your Income Tax Return (ITR). The PAN card is essential for various purposes, especially in banking and tax-related matters. If your PAN card is inactive, you won’t be able to file your ITR. Missing the deadline for filing your ITR can lead to fines and potential legal complications.
Additionally, if your PAN isn’t linked to your Aadhaar, the TDS rate could jump to 20%, resulting in higher tax payments. To avoid these complications, it’s important to link your PAN card with your Aadhaar card promptly.