What happens if you fail to link Aadhaar with PAN?

If you have a PAN card, it is essential for you to link it with your Aadhaar card. According to Section 139AA of the Income Tax Act, every individual who has been allotted a permanent account number (PAN) and who is eligible to obtain an Aadhaar number, must link the two before the prescribed deadline.

The deadline for linking Aadhaar and PAN was initially set for 31st December 2017. However, it has been extended several times since then to give taxpayers more time to comply with the mandate. The latest deadline, as per the Circular No. 3/2023, is 31st March 2023 30th June 2023. Those who fail to link their Aadhaar and PAN by this date will face serious consequences.

Q For whom is Aadhaar-PAN linkage not compulsory?

A Aadhaar-PAN linkage requirement does not apply to :

• Individuals from Assam, Jammu and Kashmir, and Meghalaya;
• Non-resident taxable person;
• Super Senior Citizen (Age of 80 years or more); or
• Not a citizen of India.

Q Can I link Aadhaar-PAN now?

A Yes, you can link Aadhaar-PAN till 31st March 2023 30th June 2023 here after paying a fee of Rs. 1,000. 

Q What happens if I do not link Aadhaar and PAN?

A Here are some of the key implications of not linking Aadhaar and PAN by the prescribed deadline of 31st March 2023 30th June 2023:

• Inoperative PAN: If an individual fails to link their Aadhaar and PAN by the deadline, their PAN will become inoperative. This means that the PAN card will not be valid for any financial transactions, including filing income tax returns, opening a bank account, buying or selling any immovable property, etc.

• Higher Rate of TDS/TCS : Since the PAN card will become inoperative, TDS/TCS will be deducted at a higher rate, and it will not appear in 26AS.

• Problems in availing financial services: Without a valid PAN card, an individual may face difficulties in getting credit from banks or financial institutions. A valid PAN card is a mandatory requirement to apply for loans or credit cards.

• Problems in claiming tax refunds: If the PAN card is inoperative, the individual may face problems in claiming tax refunds, as the PAN card is mandatory for the same.

• Additional Consequences : If an individual's PAN becomes inoperative due to failure to link it with Aadhaar, then pending tax returns, refunds, and proceedings cannot be processed, issued, or completed, respectively.

Q How can I check if my Aadhaar is linked to PAN?

A Go to Income Tax e-Filing Portal (here) -> Click on the 'Link Aadhaar Status' Option -> Enter your Aadhaar and PAN Number -> Click on View Link Aadhaar Status or you can also verify the status on UTIITSL Portal here.

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