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- Aadhar Pan Link ; Aadhar ; Pan ; Aadhar Card; If PAN Is Not Linked With Aadhaar, Double Tax Will Have To Be Paid On Returns From FD And RD, Know Here What Are The Rules Regarding This
New Delhi6 minutes ago
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If you have not yet linked PAN with Aadhaar, then do it today. The government has given time till June 30, 2021 for linking PAN with Aadhaar. If you do not link them by June 30, you may have to face many problems. This will also affect your bank deposits and returns from RD. You will get double TDS on the interest earned on your deposits. We are telling you what will be the effect of not linking Aadhaar-PAN on banking related works.
Have to pay double TDS
Pankaj Mathpal, personal finance expert and founder and CEO of Optima Money Managers, will now have to pay more TDS if a person does not link his PAN with Aadhaar by June 30, 2021. Because if you do not link PAN with Aadhaar, your PAN will become inoperative. Under the Income Tax Act, if a person does not have an active PAN number, then the bank will deduct TDS at the rate of 20% on the interest earned from FD and RD.
According to the current rule, if the income from FD and RD is up to 40 thousand (50 thousand rupees in the case of senior citizens) in 1 financial year, then you will not have to pay any tax on it. 10% TDS is deducted on income above this.
PAN will be deactivated
The Income Tax Department had said that if any PAN card holders do not link PAN with Aadhaar, their PAN will be declared inoperative. After this PAN will not be used for financial transactions. Apart from this, for not linking them by June 30, a fine of Rs 1,000 will have to be paid. The provision for this penalty has been made under the new section 234H added in the Income Tax Act 1961. The government has done this through the Finance Bill 2021, which was passed by the Lok Sabha on 23 March.
It is necessary to link Aadhaar with PAN
CA Abhay Sharma (Former President Indore Chartered Accountant Branch) explains that it is mandatory to show PAN on demand under section 139AA of the Act. Under section 139AA, it is mandatory for every person who is eligible to get Aadhaar number to be mentioned in his income tax return and application for making PAN card. Apart from this, it is necessary to link PAN with Aadhaar for those who were allotted PAN till July 1, 2017 and who are eligible to get Aadhaar number. If the person does not do this then his PAN card will become inoperative.
What is TDS?
If someone has any income, then after deducting tax from that income, if the remaining amount is given to the person, then the amount deducted as tax is called TDS. The government collects tax through TDS. It is deducted on different types of income sources like salary, interest or commission received on any investment etc. Any institution (which comes under the purview of TDS) making the payment deducts a certain amount as TDS.