Ensure PAN-Aadhaar linkage by June 30. Else? Know the Repercussions

LI Network

Published on: 29 June 2023 at 12:02 IST

PAN and Aadhaar linking: The deadline for linking Aadhaar and PAN cards is approaching, but the government has extended the deadline by three months to June 30, providing more time for income taxpayers.

Individuals who haven’t linked their cards yet can still do so, but they will be subject to a penalty of ₹1000. Time is running out with only three days remaining. What happens if you miss the deadline for linking PAN and Aadhaar?

According to Income Tax rules, taxpayers who fail to link their PAN to their Aadhaar will have their PAN cards rendered inoperative starting from July 1, 2023. Here are the implications of having an inoperative PAN card:

1) No refunds will be given for such PAN cards.
2) No interest will be paid on any refunds while the PAN card is inoperative.
3) TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) will be deducted or collected at a higher rate.

However, it is possible to make the PAN card operational again within 30 days by informing the relevant authorities and paying a fee of Rs. 1,000. To link your PAN card with your Aadhaar card online, follow these steps:

1. Visit the official website of the Income Tax Department of India: eportal.incometax.gov.in.
2. If you haven’t registered already, complete the registration process.
3. Use either your PAN card or Aadhaar number as your user ID.
4. Log in to the portal using your user ID, password, and date of birth.
5. Look for a pop-up notification on your screen regarding the linking of PAN with Aadhaar. If it doesn’t appear, navigate to the ‘Quick Links’ section on the left side of the homepage.
6. Click on the ‘Link Aadhaar’ option.
7. Enter your PAN number, Aadhaar number, and your name as it appears on your Aadhaar card.
8. If applicable, check the box indicating “I have only the year of birth on Aadhaar card.”
9. Verify the Captcha code.
10. Once the details you provided match your PAN and Aadhaar records, you will receive a confirmation notification stating the successful linking of your Aadhaar and PAN card.

Regarding the fee for linking Aadhaar and PAN, as per the Ministry of Finance’s revenue department notification, citizens can link their Aadhaar card to their PAN online by paying a fee of Rs. 1000 before June 30. It’s worth noting that Aadhaar-PAN linking was free until March 31, 2022. From April 1, 2022, a fee of ₹500 was imposed, which was later increased to ₹1,000 starting from July 1, 2022.