5 consequences you may face if you don't link Aadhaar with PAN today

Mumbai: Come Friday, your PAN card will be rendered useless unless linked with your Aadhaar, the deadline for which expires at midnight on August 31, Thursday.

Although sources in the Finance Ministry said that the government is likely to take a call on extension of the deadline on Thursday, the tax department had earlier said that the August 31 deadline stands true for now.

Read: Few more hours left to link Aadhaar with PAN! Here are 4 steps to do it

As enshrined in the Finance Act, 2017, the quoting of the 12-digit unique identification number has become mandatory for processing income tax returns.

While the Supreme Court is yet to hear and deliver its judgement on the Aadhaar Act, all Aadhaar related rules, including the linkage of PAN and Aadhaar will continue.

For all those who have still not linked their PAN with Aadhaar, following may be the consequences you have to face:

1. Income Tax returns will not be processed – The Finance Act, 2017, clearly states that income tax returns, even if they are filed on time, will not be processed unless the taxpayer links their Aadhaar with PAN.

2. Notice from I-T department: You may be served a notice to file your returns under Section 142(1) and may even have to pay a penalty of Rs 5,000.

3. No claim to losses: Your losses like business loss, capital loss, etc will not be redeemed.

4. No processing of refunds: Your refunds will not be granted if your ITR is not processed.

5. If the tax is payable then you may have to pay interest under section 234 A, B, C as the case may be.