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It is mandatory for all Permanent Account Number (PAN) cardholders to link their Aadhaar with PAN

New Delhi: As per the directives of the Central Board of Direct Taxes (CBDT), it is mandatory for all Permanent Account Number (PAN) cardholders to link their Aadhaar with PAN on or before March 31.

‘If your Aadhaar is not linked then your PAN will be considered inoperative and this will have an impact on the TDS rate at the time of receiving any policy payouts’, insurance companies have informed policyholders.

If PAN and Aadhaar are not linked, then the TDS rate on taxable payout will be 20 percent as per Section 206 of the Income Tax Act 1961, effective from April 1.

PAN if not linked with Aadhaar by March 31, 2021, shall remain inoperative till such period, it is linked. Inoperative Pan means TDS will be deducted at higher rates, ITR cannot be filed and a penalty of Rs 10,000 may be imposed.

March 31 is important as it is the last date to file/revise ITR for FY 2019-20. It is also the last date of investments for deduction u/s 80C or 80D, etc. for FY 2020-21 and the last date to file Q1 & Q2 TDS Returns of FY 2020-21 without a late fee.

As the new financial year kicks in, from July 1, TDS at 0.1 percent will have to be paid on purchases of more than Rs 50 lakh if turnover in the financial year 2020-21 exceeds Rs 10 crore under Section 194Q.

In addition, charitable Institutions/Trusts already registered with the Income Tax Department will have to re-register themselves in 2021-22.

Income Tax Audit will not be required for FY 2020-21 for persons having turnover up to Rs 10 crore if the cash component does not exceed 5 percent of total Receipts/Payments. Payments received or made by cheques other than account payee cheques will be counted as a cash component.

Also, the ITR of FY 2020-21 cannot be filed after December 31, 2021, which implies that three months less time is available as March 31 used to be the cut-off date.

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.

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