How to Link PAN and Aadhaar Card: The deadline for linking PAN (Permanent Account Number) with Aadhaar passed on 30th June 2023. If taxpayers did not link their PAN with Aadhaar by this date, their PAN became inoperative from 1st July 2023. The Income Tax Department has given a final reminder to link Aadhaar with PAN by 31st May 2024. Failure to do so will result in tax deductions at higher rates, as per the Income Tax Act. This article provides an overview of the consequences of not linking PAN with Aadhaar and steps to complete the process.
How to Link PAN and Aadhaar Card Overview
| Last Date for Linking | 30th June 2023 |
|---|---|
| New Deadline for Compliance | 31st May 2024 |
| Penalty for Late Linking | Rs. 1,000 |
| Impact of Non-Linking | Inoperative PAN, higher TDS/TCS rates, issues with filing income tax returns |
| Steps for Linking | Pay penalty, submit linking request via the Income Tax e-filing portal |
Importance of PAN-Aadhaar Linking
The PAN-Aadhaar linking is a mandatory process for all taxpayers. Without it, your PAN becomes inactive, making it impossible to file income tax returns. Additionally, financial transactions requiring PAN, such as investments, buying property, and high-value purchases, will be affected. An inactive PAN also means that the tax department will withhold or collect taxes at a higher rate from you.
Linking your PAN with Aadhaar also helps the government track and prevent tax evasion, by linking your financial activities with a unique identification number. Thus, it’s crucial for individuals to comply with the guidelines set by the Income Tax Department.
Consequences of Missing the Deadline
If the PAN-Aadhaar linking is not completed by the new deadline of 31st May 2024, the PAN will remain inoperative, and the following repercussions will occur:
- Higher TDS/TCS Rates: For those with an inoperative PAN, tax will be deducted or collected at a higher rate.
- Filing Complications: The income tax department will not process any returns filed without a valid PAN-Aadhaar linkage.
- Financial Restrictions: Any financial transaction that mandates the use of PAN may be denied or delayed.
Despite these consequences, taxpayers can still link their PAN with Aadhaar by paying a penalty of Rs. 1,000.
Steps to Link PAN with Aadhaar
Even if the deadline has passed, taxpayers can still link their PAN with Aadhaar by following a simple process. First, visit the Income Tax e-filing portal, and pay the late penalty fee of Rs. 1,000. After paying the fee, submit a request to link your PAN with Aadhaar through the same portal. It is essential to have your Aadhaar number, PAN number, and mobile number (linked to Aadhaar) handy during this process.
It takes approximately 4-5 days for the payment to be processed, and another 7 to 30 days for the PAN to become active again. After completing the linking, you can resume using your PAN for financial transactions and tax-related activities.
Conclusion
Linking PAN with Aadhaar is not only essential for complying with government regulations, but also for ensuring smooth financial and tax-related operations. Although the initial deadline has passed, taxpayers still have the opportunity to link their PAN with Aadhaar by 31st May 2024, by paying the penalty.
