PAN-Aadhaar linking: As new deadline approaches, here's what you must keep in mind

PAN-Aadhaar link: The Finance Ministry extended the deadline for PAN-Aadhaar linking by three months from March 31 to June 30 earlier this week. Not linking PAN and Aadhaar cards will have serious consequences as all unlinked PAN cards will become inoperative after July 1. The Finance Ministry’s release read, “Failure to do so shall attract certain repercussions under the Act w.e.f. 1st April 2023. The date for intimating Aadhaar to the prescribed authority for the purpose of linking PAN and Aadhaar has now been extended to 30th June 2023.” The PAN card can, however, be made operative in 30 days after payment of Rs 1,000 as a fee. This is being done to avoid tax evasion and make tax payment system seamless. 

What happens if your PAN card is inoperative?

Taxpayers will not get the following benefits during the period that PAN remains inoperative: 

- No refund shall be made against such cards

- Interest shall not be payable on such refund

- TDS and TCS shall be deducted/collected at a higher rate

Steps to link PAN and Aadhaar cards

- Go to the Income Tax e-Filing portal

- Click ‘Link Aadhaar’ in the Quick Links section

- Enter PAN number to receive OTP

- Enter OTP 

- You will be redirected to the e-Pay tax page

- Click on proceeds, select Assessment Year as 2023-24, and type of payment as Other Receipts (500), and continue

Paying Aadhaar-PAN linking fees

In order to link your Aadhaar and PAN cards, you need to pay a fee in case you miss the deadline. Here’s how you can pay the fee to link Aadhaar and PAN cards

- The amount will be pre-filled against others

- Select Challan No./ITNS 280 in case payment has not been done

- Select 0021 as the tax application and Rs 500 as a type of payment

- Fill in the details and pay the amount using net banking, UPI, or credit/debit cards

How to check PAN-Aadhaar linking status

Taxpayers need to follow these steps: 

- Visit the Income Tax e-filing portal 

- Click on Quick Links and select Link Aadhaar status

- Key in PAN and Aadhaar numbers

- Click on View Link Aadhaar status

- If an Aadhaar number appears, it means PAN-Aadhaar cards are linked 

Who has been exempt from PAN-Aadhaar linking? 

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 among those exempt from linking both the cards. 

Why is linking PAN-Aadhaar cards mandatory? 

Taxpayers cannot do multiple things if their PAN and Aadhaar cards are not linked. Here are some of those things: 

- Cannot buy a vehicle or get motor vehicle insurance

- Cannot open any other bank account besides a basic Savings Account

- Cannot buy any immovable property worth more than Rs 10 lakh

- Will not be able to invest in mutual funds for above Rs 50,000

- Cannot invest in RBI bonds, company bonds and debentures

- Cannot deposit more than Rs 50,000 a day in public or private bank

- Cannot avail of LIC annual premium of more than Rs 50,000

- Cannot do foreign cash payments of more than Rs 50,000 at a time

Also read: PAN-Aadhaar linking status: Here's how to check PAN-Aadhaar link status online

Also read: PAN Aadhaar Linking Date Extend: Date for linking PAN and Aadhaar extended to June 30; all details here

Also read: Aadhaar-PAN linking last date extended by 3 months: Here’s how to link Aadhaar with PAN card