June 30th, 2023 – The deadline for linking the Permanent Account Number (PAN) with Aadhaar, the unique identification number is fast approaching. Failure to link PAN with Aadhaar by this date will result in the deactivation of PAN cards. Initially set for March 31, 2022, the deadline was extended to March 31, 2023. It has now been revised to June 30, 2023. Individuals who have not yet linked their PAN and Aadhaar have the opportunity to do so, but a penalty fee of Rs 1000 will be imposed.

According to an official circular from the IT department, individuals who were assigned a PAN before July 1st, 2017, are required by law, specifically Section 139AA of the Income-tax Act, to provide their Aadhaar number for linking purposes. Failing to meet this requirement by the specified date will render the PAN card inoperative.

How to Link a Pan with an Aadhaar Card?

Follow these easy steps to link PAN with Aadhaar card online-

Visit the official website of the Income Tax Department of India: https://www.incometaxindiaefiling.gov.in/
On the homepage, you will find a section called “Quick Links.” Under that section, click on the link that says “Link Aadhaar.”
Alternatively, you can directly visit the Aadhaar-PAN linking page by clicking on the following link: https://www.incometaxindiaefiling.gov.in/e-Filing/Services/LinkAadhaarHome.html
On the Aadhaar-PAN linking page, you will find a form. Fill in the required details such as your PAN number, Aadhaar number, name as per Aadhaar, and the captcha code.
Make sure that the details you enter in the form match the information on your PAN card and Aadhaar card.
If your Aadhaar card includes only the year of birth, make sure to tick the box indicating the same.
After filling in the details, click on the “Link Aadhaar” button.
If the details provided by you match the details in the Aadhaar database, your PAN card will be successfully linked with your Aadhaar card.
If there is any discrepancy in the information provided, an error message will be displayed. In such cases, you need to ensure that the details you entered are correct and match the information on both your PAN and Aadhaar cards.
If you are unable to link your PAN and Aadhaar online, you can do it offline as well. You can download the PAN-Aadhaar linking form from the income tax department’s website or visit your nearest PAN service center to submit the form along with a copy of your PAN card and Aadhaar card.

Check How to Link PAN with Aadhaar Card via SMS

What Will Happen if You Fail to Link PAN With Aadhaar by June 30, 2023?

Under rule 114AAA of the Income-tax Regulations, if you fail to link PAN with Aadhaar, your PAN will become inoperative and you will be unable to provide, disclose, or use your PAN, and will be liable for any consequences mentioned under the Act. The following are some of the implications of this situation-

You will not be able to file your income tax return with an inoperative PAN
Any outstanding income tax returns will not be processed
Refunds that are pending cannot be issued to inoperative PANs

Who should Link PAN With Aadhaar Card?

Section 139AA(2) of the Income-tax Act of 1961 states that individuals who were allotted a PAN before July 1, 2017, must provide the government with their Aadhaar Number to facilitate linking their Aadhaar and PAN numbers.

Who does not Need to Link PAN With Aadhaar?

The following categories of individuals are exempted from the mandatory requirement to link their Aadhaar with PAN-

People living in Assam, Jammu and Kashmir, and Meghalaya,
Non-resident Indians (NRIs) according to the Income-tax Act of 1961,
Those who were 80 or older at any point in the previous year.

What Are the Consequences of Not Linking PAN With Aadhaar?

The consequences of not linking PAN with Aadhaar are severe:

Taxpayers will be unable to use their PAN for various purposes, including filing tax returns, processing pending returns, issuing refunds, completing pending proceedings, and deducting taxes at the regular rate. This will lead to hindrances and delays in important tax-related procedures.

Individuals may encounter difficulties with banks and other financial institutions, as an operative PAN serves as a crucial Know Your Customer (KYC) requirement for financial transactions. Not having an operative PAN can impede smooth financial activities and transactions.

To assist residents facing challenges in linking due to discrepancies in their details, the Income Tax Department has issued a reminder and provided a specific process to rectify the mismatch and effectively link Aadhaar and PAN cards.

Suggested read: What is KYC, why is it important?

Facing Issues While Linking PAN With Aadhaar?

According to recent communication from the IT department on Twitter, many individuals are facing difficulties while attempting to link their PAN and Aadhaar due to demographic discrepancies, particularly in the Name, Date of Birth, and Gender fields.

To address this issue, the department has outlined two methods for rectifying the mismatch. Individuals can update their Aadhaar and PAN card details online or visit specialized service providers for Aadhaar and PAN.

In addition, the tweet states that biometric-based authentication is now available for individuals with demographic mismatches to ensure a smoother linking process between PAN and Aadhaar. This facility can be accessed at dedicated centers of PAN Service Providers (Protean & UTIITSL).

What Is the Penalty Fees for Linking Aadhaar With PAN?

The government initially did not impose any penalty fee until the deadline of March 31, 2022. However, the deadline was extended to March 31, 2023, and a penalty fee of Rs. 1000 was introduced for non-compliance. Now, with the revised deadline of June 30, individuals are required to link their PAN with Aadhaar, and a penalty fee of Rs. 1000 will be applicable.

Who Is Exempted From Linking Aadhaar With PAN?

The requirement of linking Aadhaar with PAN does not apply to the following individuals:

Individuals aged 80 years or above.
Non-residents, as defined in the Income-tax Act
Non-Indian citizens.

How Can I Check Online if My Aadhaar is Linked to PAN Card?

Here are the steps to check if your Aadhaar is linked with your PAN card online:

Go to the official Income Tax e-filing website: incometax.gov.in/iec/foportal/.
Look for the “Quick Links” section located on the left-hand side of the page.
Click on the “Link Aadhaar Status” option within the “Quick Links” section.
You will be prompted to provide your 10-digit PAN number and 12-digit Aadhaar number.
Enter the requested information accurately.
Click on the “View Link Aadhaar Status” button.
If your Aadhaar is successfully linked with your PAN card, your Aadhaar number will be displayed on the screen.

How Can I Check if My Aadhaar Is Linked to PAN Card Through SMS?

To check if your Aadhaar is linked with your PAN card through SMS, follow these steps:

Open the messaging app on your mobile phone.
Compose a new SMS.
Enter the following format: “UIDPAN <12-digit Aadhaar number> <10-digit PAN number>”. For example: “UIDPAN 123456789012 ABCDE1234F”.
Send the SMS to either 567678 or 56161.
If your Aadhaar is successfully linked with your PAN card, you will receive a confirmation message.

Wrapping it Up:

The government has extended the deadline for linking PAN and Aadhaar cards in India. This extension provides individuals with additional time to complete the process of linking their PAN and Aadhaar cards. It is important for taxpayers to take advantage of this extension and ensure compliance with the requirement of linking PAN and Aadhaar. By linking these two documents, individuals can streamline their financial transactions and ensure smooth income tax filing processes. However, it is essential to stay updated with the latest guidelines and deadlines issued by the Income Tax Department to avoid any non-compliance issues.