PAN-Aadhaar Linking Deadline Expires: What To Do If Your PAN Becomes Inoperative

With the government not releasing any statement regarding an extension of the PAN-Aadhaar linking deadline, know what can an individual do to make their PAN operative again.

"The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs.1,000," the income tax department had said. 

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The deadline for linking the Permanent Account Number (PAN) with Aadhaar expired last night. Unlike previous occasions, the government has not extended the deadline. Any individual who has not linked the two cards by June 30, will have their PAN becoming inoperative. Individuals will not be able to access specific services that require a mandatory PAN number. Additionally, if an individual has not yet filed their income tax return (ITR), they can only do so after successfully linking their PAN with Aadhaar.

With the government not releasing any statement regarding an extension of the PAN-Aadhaar linking deadline, what can an individual do to make their PAN operative again?

The Central Board of Direct Taxes (CBDT), in its notification dated March 28, 2023, has provided clarification on the steps individuals can take to restore the operability of their PAN if it has become inoperative.

"The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs.1,000," the income tax department had said. 

This means you have to pay a penalty of Rs 1,000 to make the PAN operative again. It will take 30 days from the date of linking to make the PAN operative again.

How To Pay Penalty Fee?

The process involves logging into the income tax e-filing website. Here's a guide on how to pay the penalty to make PAN operative again:

• Visit the income tax e-filing website and log in to your account.
• Look for the "Link PAN with Aadhaar" option and click on it.
• Enter all the required details as prompted.
• Complete the payment process through e-Pay Tax.  
• Enter the ‘PAN’ number under the ‘PAN/TAN’ and ‘Confirm PAN/TAN’ columns, enter your mobile number, and click the ‘Continue’ button.
• Hit ‘Proceed’, select 2023-24 as the assessment year, and other receipts (500) as the type of payment 
• The amount will be pre-filled against the ‘Others’ option. Click the ‘Continue’ button and make the payment.

Please note that it may take 30 days from the date of linking for the PAN to become operative again.

What Happens If You Do Not Link The Two Cards?

If your PAN becomes inoperative, you will not be able to furnish, intimate, or quote your PAN and would be liable to all the consequences for such failure, according to the advisory issued by the Income Tax Department.

Here are six implications for taxpayers:

1. Your PAN will become inoperative.
2. Filing ITR will not be possible.
3. Pending returns will not be processed
4. Pending refunds cannot be issued.
5. Pending proceedings, as in the case of defective returns cannot be completed.
6. Tax will be deducted at a higher rate.

It is important to note that it is not mandatory for certain groups. Non-Resident Indians (NRIs), individuals who are not Indian citizens, senior citizens aged above 80 years, and residents of Jammu & Kashmir, Assam, and Meghalaya are exempt from the requirement of PAN-Aadhaar linking. The government emphasises the importance of PAN-Aadhaar linking as a measure to streamline the tax payment process and minimise tax evasion.