In order to provide some more time to the taxpayers, the date for linking PAN and Aadhaar has been extended to June 30, 2023. Linking the PAN card with the Aadhaar Card is an important task and an Indian citizen needs to complete this task before the deadline. According to the Income Tax Department if the PAN is not linked with Aadhaar then PAN will become inoperative.
From 1st July, 2023, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative and the consequences during the period that PAN remains inoperative will be as follows:
– No refund shall be made against such PANs
– Interest shall not be payable on such refund for the period during which PAN remains inoperative
– TDS and TCS shall be deducted /collected at higher rate, as provided in the Act.
– The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs.1,000.
Why is Important to link Aadhar with PAN Card
The Income-tax Department announced the linking of PAN with Aadhaar after it came across instances where multiple permanent account numbers (PANs) were allotted to one person, or where one PAN was allotted to more than one person.
To have a robust way of de-duplication of the PAN database, it was made mandatory for a taxpayer who is eligible to obtain Aadhaar, to quote his Aadhaar in the application form for PAN and return of income.
As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar before 31.3.2023.
Non-Residents Indians (NRIs), citizens aged above 80 years, and residents of Assam, Meghalaya and Jammu and Kashmir need not link their Aadhaar with PAN cards since they come under the exempt category.
Who should link Aadhar with PAN card
Under the provisions of the Income-tax Act, 1961(the ‘Act’) every person who has been allotted a PAN as on 1st July, 2017 and is eligible to obtain Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March, 2023, on payment of a prescribed fee. Failure to do so shall attract certain repercussions under the Act w.e.f. 1st April, 2023. The date for intimating Aadhaar to the prescribed authority for the purpose of linking PAN and Aadhaar has now been extended to June 30, 2023.
Citizen can check the status of PAN Aadhaar link by following below steps
– Visit the Income Tax e-filing portal – https://www.incometax.gov.in/iec/foportal/
– Under the ‘Quick Links’ heading, click on the ‘Link Aadhaar Status’.
– Enter the ‘PAN number’ and ‘Aadhaar Number’ and click the ‘View Link Aadhaar Status’ button.
A message regarding your Link Aadhaar status will be displayed on successful validation. The following message will be displayed when your Aadhaar is linked to your PAN card: “Your PAN is already linked to given Aadhaar”
Pan-Aadhaar linking with penalty
The deadline for linking PAN and Aadhaar was March 31, 2022, however was extended till June 30, 2022, at a charge of Rs. 500. This was once more extended till March 31, 2023, but with a Rs 1,000 fee.
The last date to link PAN with Aadhaar has been extended several times in the past by the Central Board of Direct Taxes (CBDT).
By following the below steps, PAN card can be linked with Aadhaar card with the penalty.
– Visit e-Filing portal’s Home page and click on Link Aadhaar in Quick Links section.
– Enter your PAN and Aadhaar Number
– Click on Continue to Pay Through e-Pay Tax.
– Enter your PAN, Confirm PAN and Mobile number to receive OTP
– Post OTP verification, you will be redirected to the e-Pay Tax page.
– Click on Proceed on the Income Tax tab.
– Select AY as 2023-24 and type Payment as Other Receipts and click Continue.
– Applicable amount will be pre-filled against Others.
Post payment of fee, Aadhaar number with PAN can be linked on the e-Filing Portal.
According to Section 139AA of the Income Tax Act, taxpayers with a PAN card should link it to their Aadhaar cards. Thus, all taxpayers must mandatorily link their PAN with their Aadhaar cards by June 30, 2023.
As of now more than 51 crore PANs have already been linked with Aadhaar.