BackWhat if you don't link PAN with Aadhaar by June-end
PAN-Aadhaar linking: After March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative
PremiumPAN-Aadhaar linking: The deadline to link PAN with Aadhaar was extended to March 31, 2023 with some penalty. This was announced by the Central Board of Direct Taxes (CBDT) via a notification dated March 29, 2022. The tax department had said that non-linking of PAN with Aadhaar by March 31 would attract penalty of up to ₹1,000, but such PAN will remain functional for one more year till March 2023, for filing ITR, claiming refunds and other I-T procedures.
Linking of PAN-Aadhaar by June 30 will cost ₹500
As per the circular issued by CBDT those taxpayers who link their PAN with biometric Aadhaar by June 30, 2022, would be required to pay late fees of ₹500.
Linking of PAN-Aadhaar on or after July 1 will cost ₹1000
As per the circular issued by CBDT those taxpayers who link their PAN with Aadhaar on or after July 1, they would have to pay a penalty of ₹1,000.
How to pay penalty amount
Fees to be paid by Challan No ITNS 280 with Major head 0021 (Income Tax Other than Companies) & Minor head 500 (Fee), according a recent tweet on the Income Tax Department’s official Twitter account
What will happen if your PAN gets inoperative?
After March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative.
Once your PAN becomes inactive, you will be restricted from doing financial transactions, where quoting of PAN is mandatory like mutual funds, subjected to TDS at higher rates and penalty under section 272B
How to Link PAN with Aadhaar
- Visit the official website of income tax India www.incometax.gov.in.
- Select the Link Aadhaar option under the quick links section and you will be redirected to a new window
- Enter your PAN number details, Aadhar card details, name and mobile number
- After verifying the information, select the 'I validate my Aadhaar details' option. After that, choose the 'Continue' option.
- On your registered mobile number, you will receive a one-time password (OTP). Fill in the blanks on the screen, then click 'Validate.' After you pay the penalty, your PAN and Aadhaar will be linked.
For those who do not have access to income tax portal, they can link the documents through SMS.
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