Your PAN card will become inoperative if not linked with your Aadhaar

Before March 31, all Permanent Account Number (PAN) holders who are not in the "exempt category" should link their PAN card to Aadhaar; failing to do so will render it "inoperative" beginning April 1. "Don't delay, do it today!," the Central Board of Direct Taxes (CBDT) advised.

“As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar before 31.3.2023. From 1.04.2023, the unlinked PAN shall become inoperative,” an advisory by the Income Tax Department read.

Individuals who reside in the states of Assam, Jammu and Kashmir, and Meghalaya are included in the "exempt category," as stated in a notification issued in May 2017 by the union finance ministry; being a non-resident as defined by the 1961 Income Tax Act; being at least 80 years old at any point in the previous year and not having an Indian citizenship.

Here's what can happen if your PAN becomes inoperative:-

The individual will be unable to use the inactive PAN to submit an I-T return; Returns that are pending will not be processed; Inactive PANs will not receive any pending refunds; Once the PAN ceases to function, it will be impossible to complete pending proceedings, such as those regarding incorrect returns; and a higher rate of tax deduction will be applied.

Steps to link your PAN- Aadhaar via portal

1) Go to the Income Tax e-filing official websites- eportal.incometax.gov.in or incometaxindiaefiling.gov.in

2) Register on the portal if you haven’t already. The PAN number will be the user ID.

3) Log into the portal by entering your user id, password and date of birth.

4) A pop-up window will appear, asking you to link your PAN with Aadhaar.

5) If the window doesn’t appear, go to ‘Profile Settings’ on the Menu bar and click on Link Aadhaar.

6) Information such as name, date of birth, and gender will already be mentioned as per your PAN card details.

7) Verify the PAN details on the screen with the ones mentioned on Aadhaar.

8) If there is a mismatch, you need to get the same corrected in either of the documents.

9) If the details match, enter your Aadhaar number and click on the link now button.

10) A pop-up message will inform you that your Aadhaar has been successfully linked to your PAN.

You can also link your PAN by visiting the nearby PAN service centres:

The linking process can also be done manually by visiting the nearby PAN service centre. A form named ‘Annexure-I’ needs to be filled and submitted along with a copy of the PAN card and Aadhaar card. This will be a paid service.