 "Aadhaar PAN")
The deadline for linking Permanent Account Number (PAN) with Aadhaar expired on June 30, 2023. The government has also yet to issue any notification regarding the extension of the deadline. Therefore, according to the Income Tax Department's official guidelines, all PAN cards that were not linked to Aadhaar became inoperative from July 1.
In addition, people who missed the linking deadline are now unable to access certain services that require the PAN.
However, if your PAN card has become inoperative, you can reactivate it. On March 28, 2023, the Central Board of Direct Taxes (CBDT) issued a notification outlining the steps to make the PAN card operational again.
The notification stated, "To reactivate the PAN card, individuals need to inform the designated authority about their Aadhaar linkage and pay a fee of Rs 1,000. The reactivation process will take 30 days from the date of linking."
How to check whether PAN is valid?
1. Navigate to the Income Tax Filing Portal at incometax.gov.in/iec/foportal/.
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2. Look for the "Verify Your PAN" service under the "Quick Links" section and click on it.
3. On the "Verify Your PAN" page, enter your PAN number, full name, date of birth, and a mobile phone number.
4. Click "Continue" to proceed to the verification page.
5. Enter the six-digit One-time Password (OTP) that was sent to your mobile phone and click "Validate." Remember that the OTP is only valid for 15 minutes, and you have three attempts to enter the correct password.
6. If the verification is successful, your PAN status will be displayed on the screen. If your PAN remains active, the message will say, "PAN is active, and the details are as per your PAN."
Also Read: Missed PAN-Aadhaar deadline? All the transactions that you can't do now
Also Read: Missed PAN-Aadhaar deadline? All the transactions that you can't do now
How to reactivate inoperative PAN?
Individuals who fail to link their PAN with Aadhaar by the deadline will have to pay a penalty of Rs 1,000 in order to reactivate their PAN card, said the official notification.
Furthermore, the reactivation process will take approximately 30 days from the date of linking to complete the reactivation process and make the PAN card operational again.
If your PAN has become inoperative, you can reactivate it after paying a fine. Here's how to do it:
1. Visit incometax.gov.in/iec/foportal/. and select 'e-Pay Tax' to submit the Aadhaar-PAN linking request.
2. Enter PAN details and look for CHALLAN NO./ITNS 280 to submit an Aadhaar-PAN linking request.
3. Make sure to pay fees under Minor Head 500 (Fee) and Major Head 0021 [Income Tax (Other Than Companies)] on a single challan.
4. Choose a payment method.
5. Enter the PAN, the Assessment year, and the address.
6. Enter the Captcha code and then click the Proceed tab.
Notably, the Income Tax Department allows you to file income tax returns (ITR) even if your PAN and Aadhaar are not linked. However, the department will not process your return until the two are linked.
Furthermore, the income tax department has issued a clarification regarding the linking of Aadhaar and Permanent Account Number (PAN). It states that individuals who have paid a penalty for linking the two and provided consent, but the linking process has not been completed by June 30, 2023, will be considered by the income tax department before declaring the PAN inoperative.
Also Read: What if you miss Aadhaar-PAN linking deadline? Here's what I-T dept says
Also Read: What if you miss Aadhaar-PAN linking deadline? Here's what I-T dept says
Consequences of not linking PAN and Aadhaar
According to the Income Tax Act, 1961, it is mandatory for all PAN holders who do not fall into the exempt category to link their PAN with Aadhaar. Failure to do so will render the PAN inoperative.
Furthermore, failing to link PAN with Aadhaar has consequences. For example, you will not be unable to file ITRs, open a bank account, or invest in certain financial products. You may also face a higher tax deduction rate on your savings interest.
