PAN Aadhaar Linking

PAN Aadhaar Linking: What Happens If PAN Card Is Not Linked To Aadhaar Card?

PAN Aadhaar Linking: The Permanent Account Number (PAN) card and Aadhaar card are essential identification documents for Indian citizens. PAN cards are issued by the Income Tax (IT) department, while Aadhaar cards are issued by the Unique Identification Authority of India (UIDAI).

PAN serves as a unique identification number for individuals and businesses, primarily for tax-related purposes, whereas Aadhaar provides a 12-digit unique identification number for all residents. Despite their distinct purposes, the IT department has mandated the linking of PAN and Aadhaar cards.

Circular on PAN-Aadhaar Linking

The IT department has mandated the linking of PAN with Aadhaar for all PAN holders, with exceptions for certain categories, by June 30, 2023. Originally set for March 31, 2022, the deadline was extended to June 30, 2022. Those who linked their PAN with Aadhaar between July 1, 2022, and June 30, 2023, were subject to a fine of Rs. 500. With a subsequent extension of the deadline to June 30, 2023, failure to link PAN with Aadhaar by then will incur a penalty of Rs. 1,000. Non-compliance will result in the PAN card being rendered inoperative from July 1, 2023. This measure aims to effectively regulate and combat tax evasion, as implemented by the IT department.

Who are the Exempt Categories for PAN-Aadhaar Linking?

Certain categories of individuals are exempt from the PAN-Aadhaar linking requirement and are not obligated to link their PAN with Aadhaar by June 30, 2023. These exempt categories include:

Individuals residing in the states of Jammu and Kashmir, Assam, and Meghalaya.
Non-resident taxable persons as defined by the Income-tax Act, 1961.
Individuals aged over 80 years (Super Senior Citizens).
Persons who are not citizens of India.

Last Date for PAN-Aadhaar Linking

The final date for linking PAN with Aadhaar is June 30, 2023. PAN cards that remain unlinked with Aadhaar will become inoperative after July 1, 2023.

Importance of Linking PAN with Aadhaar Card

The significance of linking your PAN card with your Aadhaar card cannot be overstated. Failure to do so can result in the PAN card becoming inoperative, leading to a series of complications:

Filing Income Tax Returns (ITR): When PAN and Aadhaar are not linked, the Income Tax Department may reject your ITR, causing delays and potential penalties.
Access to Government Services: Many government services, including passport applications, subsidy claims, and bank account openings, require submission of both PAN and Aadhaar cards. Failure to link them can hinder access to these essential services.
Obtaining a Replacement PAN Card: If your PAN card is lost or damaged and not linked to Aadhaar, obtaining a replacement can be challenging. Aadhaar linking is mandatory for applying for a new PAN card.

Consequences of Not Linking PAN with Aadhaar Card

Failure to link PAN with Aadhaar before the deadline can have severe repercussions:

Inoperative PAN Card: An unlinked PAN card becomes inoperative, impacting various financial transactions and tax-related activities.
Hindered Tax Procedures: Inoperative PAN cards prevent taxpayers from filing ITRs or claiming refunds, leading to processing delays and potential financial losses.
Higher Tax Deductions: TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) are applicable at higher rates for transactions involving inoperative PAN cards.
Limited Financial Transactions: Several financial transactions, such as opening bank accounts, issuing debit/credit cards, and purchasing mutual funds, are restricted with an inoperative PAN card.

Activating Inoperative PAN and Linking with Aadhaar:

To reactivate an inoperative PAN card and link it with Aadhaar, follow these steps:

Visit the Income Tax e-Filing Portal.
Click on the 'e-Pay Tax' option under the 'Quick Links' heading.
Enter your PAN number, confirm it, provide your mobile number, and proceed.
After OTP verification, proceed to the e-Pay Tax page.
Click on 'Proceed' under the 'Income Tax' tab.
Select the Assessment Year and the type of payment (Other Receipts).
The applicable penalty amount will be pre-filled. Continue to make the payment.

By completing these steps, you can activate your inoperative PAN card and ensure compliance with Aadhaar linking requirements.

Paying late penalty fees

You have several options for paying the late penalty on the Income Tax e-filing Portal: debit card, over-the-counter, NEFT/RTGS, net banking, or payment gateway. However, if you have a bank account with one of the following approved banks, you can use the payment gateway option to pay the penalty:

Axis Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
City Union Bank
Federal Bank
HDFC Bank
ICICI Bank
IDBI Bank
Indian Bank
Indian Overseas Bank
IndusInd Bank
Jammu & Kashmir Bank
Karur Vysya Bank
Kotak Mahindra Bank
Punjab & Sind Bank
Punjab National Bank
RBL Bank
South Indian Bank
State Bank of India
UCO Bank
Union Bank of India

Frequently Asked Questions (FAQs) - PAN-Aadhaar Linking

1. Is it compulsory to link PAN with the Aadhaar card?

Yes, it is mandatory. The IT department has mandated linking PAN with Aadhaar by 30th June 2023, failing which the PAN will become inoperative.

2. What happens if the PAN card is not linked to the Aadhaar card?

If PAN is not linked with Aadhaar by 1st July 2023, the PAN card becomes inoperative. This affects filing ITRs, accessing tax refunds, and financial services like bank account operations, credit/debit card applications, etc.

3. How to check if my PAN card is linked to an Aadhaar card?

You can verify the linkage by visiting the Income Tax e-filing portal, clicking on 'Link Aadhaar Status' under 'Quick Links,' and entering your PAN and Aadhaar numbers. A message confirming the linkage will be displayed.

4. Is it necessary to get an Aadhaar card for super senior citizens?

No, super senior citizens (above 80 years) are exempt from linking PAN with Aadhaar. However, their PAN card will still become inoperative if not linked.

5. Is PAN-Aadhaar linking free?