What Happens If PAN Card Is Not Linked To Aadhaar Card

Last Date to Link the PAN with the Aadhaar

The deadline for linking the PAN with the Aadhaar was given as 30th June 2023. if not linked with the Aadhaar card, your PAN card would have become inoperative after July 1st, 2023.

Who Are Exempted From PAN-Aadhaar Linking?

The following categories of people need not link their PANs with their Aadhaar.

• Individuals living in the states of Assam, Meghalaya, and Jammu and Kashmir
• A non-resident according to the Income Tax Act, 1961
• Non-resident Indians or NRIs
• An individual above the age of 80 years (Super Senior Citizens) at any time during the previous year.

What are the ways to link the PAN with the Aadhaar?

There are two ways in which the PAN can be linked with the Aadhaar

• Through the SMS facility: The PAN and Aadhaar can be linked via SMS. An SMS has to be sent from your registered mobile number to 567678 or 56161 in the format - UIDPAN < 12-digit Aadhaar> <10-digit PAN>
• By logging into the e-filing portal: Go to the Income Tax e-filing portal. Under quick links, click the ‘Link Aadhaar’ tab. Then, follow the ensuing instructions.

Importance of Linking the PAN with the Aadhaar

Various benefits come out of linking the PAN with the Aadhaar

For individuals:

• The PAN card of an individual will become inoperative if not linked with the Aadhaar.
• Simplified tax filing: Linking the PAN with the Aadhaar facilitates easy filing of ITR. Discrepancies are reduced since individuals can easily verify their tax information with ease. Also, individuals need not perform activities such as submitting receipts to the IT department or e-signature since these are already done using Aadhaar e-verification.
• Easy access to government services: PAN and Aadhaar cards have to be submitted to access government services, such as applying for a passport, opening a bank account, getting subsidies etc.Linking PAN and Aadhaar cards becomes necessary to streamline access to government services, making the process less cumbersome.
• Aadhaar - PAN integration prevents the cancellation of the latter.
• You can easily obtain a new PAN Card: If the PAN is not linked with the Aadhaar, obtaining a new PAN card may be difficult when the old one is lost or damaged. This is because it is mandatory to mention the Aadhaar card number while applying for a new PAN card.

For the Government:

• Useful to track tax evaders: - PAN Aadhaar seeding prevents an individual from having multiple PAN cards. This has mitigated the occurrence of fraudulent activities.
• Audit trail of all transactions: Linking the PAN to the Aadhaar provides an audit trail of all transactions to the income tax department.

What will happen if the PAN is not linked to the Aadhaar?

The consequence of not linking the PAN with the Aadhaar is that the PAN will become inoperative. The further consequences of an inoperative PAN is as follows:

• Taxpayers who have not linked their PAN to the Aadhaar within the deadline date of 30th June 2023 must pay a penalty of Rs. 1000 under Section 234H to carry out the integration now. The amount must be paid before placing a request to link the PAN with the Aadhaar on the income tax website. However, taxpayers have to ensure that they have a valid PAN number, Aadhaar number, and mobile number to pay the penalty.
• No refund can be done against inoperative PANs
• Interests cannot be paid on such refunds when the PAN is inoperative.
• Individuals cannot file pay returns using an inoperative PAN. Not filing the pay returns will result in a penalty of Rs. 10,000 under Section 234H
• Pending proceedings as in the case of defective returns cannot be completed once the PAN becomes inoperative.
• TDS and TCS will be deducted or collected at a higher rate as provided in the Income-tax Act, 1961 (the ‘Act’).
• The TCS/TDS credit will not be in Form 26AS and TCS/TDS certificates will not be available.
• Taxpayers will not be able to submit 15G/15H declarations for nil TDS.
• The following transactions cannot be done with an inoperative PAN.
• Opening a bank account
• Issuing debit or credit cards
• Buying mutual fund units
• Depositing cash exceeding Rs. 50,000 with a bank or post office during the day.
• Buying a bank draft or pay order exceeding Rs. 50,000 in cash within a single day.
• A time deposit of more than Rs. 50,000 or exceeding Rs. 2,50,000 during a financial year with banks, Non-Banking Financial Corporations (NBFCs), Nidhi, etc.
• Payment summing up to over Rs. 50,000 in a financial year through bank draft, pay order, or banker’s cheque for one or more prepaid payment instruments as laid down by the Reserve Bank of India (RBI).
• Sale or purchase of goods or services by any individual for more than Rs.2,00,000 per transaction.
• All bank transactions exceeding Rs.10,000.

• The PAN and Aadhaar cannot be interchanged: According to the Income Tax Act the PAN and Aadhaar can be used instead of each other if they are linked.

How to Check if the PAN Card is Activated or Not?

Here are the steps to check if the PAN card is activated or not

Step 1: Log into the official e-filing portal - https://www.incometax.gov.in/iec/foportal/

Step 2: Click on the quick link option and choose the hyperlink “Verify PAN Status”

Step 3: Post this, enter the PAN, full name, date of birth, and mobile number. Click the ‘Continue’ button.

Step 4: Enter the OTP dispatched to your mobile number

Step 5: A message detailing the PAN status will be displayed.

Steps to Pay the Penalty and Make Your PAN Operative

Your PAN would have become inoperative if it was not linked to the Aadhaar card within the last date. However, you can make your PAN card active again by paying a penalty. It will become operative within 7 to 10 days.

Here are the steps for reactivating a deactivated PAN card.

Step 1: Visit the income tax e-filing portal

Step 2: Click the option ‘e-Pay Tax’ under ‘Quick Links’.

Step 3: Enter the ‘PAN’ in the ‘PAN/TAN’ and ‘Confirm PAN/TAN’ fields.

Step 4: Enter the mobile number and click the ‘Continue’ button

Step 5: Do the OTP verification. You will be redirected to the e-Pay Tax page.

Step 6: Click the ‘Continue’ button

Step 7: Click Proceed’ under the ‘Income Tax’ tab.

Step 8: Now, choose the assessment year as ‘2024-25’, ‘Type of Payment (Minor Head)’ as ‘Other Receipts (500)’ and choose ‘Fee for delay in linking PAN with Aadhaar’.

Step 9: Click the ‘Continue’ button

Step 10: The appropriate amount will be pre-filled against the ‘Others’ option.

Step 11: Click the ‘Continue’ button and make the payment.

• Axis Bank
• Bandhan Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• City Union Bank
• DCB Bank
• Federal Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• Indian Bank
• Indian Overseas Bank
• IndusInd Bank
• Jammu & Kashmir Bank
• Karur Vysya Bank
• Kotak Mahindra Bank
• Karnataka Bank
• Punjab & Sind Bank
• Punjab National Bank
• RBL Bank
• South Indian Bank
• State Bank of India
• UCO Bank
• Union Bank of India

You can continue to link the PAN with the Aadhaar after making the payment. They can proceed to carry out the connection after 4 to 5 days of paying the penalty.

How to Link a PAN with the Aadhaar Card?

Step 1: Visit the income tax e-filing portal

Step 2: On the left hand side of the home page, under ‘Quick Links’, click on ‘Link Aadhaar’.

Step 3: Enter the ‘PAN’ and ‘Aadhaar number’ and click the ‘Validate’ button.

Step 4: A pop-up message stating that ‘Your payment details are verified’ will be displayed after the authentication of the penalty payment. Click ‘Continue’ to submit the Aadhaar PAN seeding request.

Step 5: Enter the necessary details and click the ‘Link Aadhaar’ button.

Step 6: Enter the OTP obtained on the mobile number

Step 7: The request to link the PAN-Aadhaar card will be submitted successfully.

A taxpayer can also visit a PAN card centre to do the PAN-Aadhaar integration. All they have to do is fill out the relevant form and submit it with the photocopies of the PAN and Aadhaar cards.

How to Link the PAN with the Aadhaar Through SMS

To use this facility, you need to ensure that your mobile number is linked with the Aadhaar. Else, you can go to the nearest Aadhaar enrolment centre to get it updated.

Step 1: Send an SMS in the format UIDPAN <12-digit Aadhaar> <10-digit PAN> to 567678 or 56161 from your registered mobile number

Step 2: Wait for a few minutes for the verification process to be completed

Step 3: After the verification is done, you will get a message confirming that your Aadhaar card has been integrated with your PAN card successfully.

Disclaimer: The steps given above are as of 15th April 2024 when this page was written and are subject to change. For exact steps refer the income tax e-filing portal or contact the income tax e-filing helpdesk.

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