PAN-Aadhaar linking: Here’s what will happen if your PAN card becomes inoperative 

Aadhaar PAN card Linking: The deadline for linking PAN cards and Aadhaar cards has been extended by three months from March 31, 2023 to June 30, 2023. Your PAN card will become inoperative if you fail to link your PAN and Aadhaar cards. Failure to link your PAN and Aadhaar cards comes with its own set of consequences. 

PAN-Aadhaar linking, however, is not mandatory for NRIs, individuals who are not Indian citizens, senior citizens aged above 80 years, and residents of Jammu & Kashmir, Assam and Meghalaya. The government insists on PAN-Aadhaar linking in order to make the tax payment system seamless and to avoid tax evasion. 

Here’s what will happen if your PAN card becomes inoperative? 

No refund shall be made against these cards

Interest won’t be payable in such refund

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

List of transactions that taxpayers cannot make 

Taxpayers cannot make multiple transactions if their PAN cards are inoperative. From not being able to get motor insurance to not being able to buy immovable property, here are the transactions you cannot do if your PAN and Aadhaar cards are not linked: 

Buying a vehicle 

Getting motor insurance

Opening any bank account other than a basic Savings Account 

Buying immovable property worth more than Rs 10 lakh

Depositing more than Rs 50,000 a day in a public or private bank

Foreign cash payments of more than Rs 50,000 at a time 

Investing in mutual funds for above Rs 50,000

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Availing LIC premium of more than Rs 50,000 

Investing in RBI bonds, company bonds and debentures 

What to do if your PAN card becomes inoperative? 

Taxpayers will have to pay a fee of Rs 1,000 to make their PAN cards operative. Here’s how you can pay the fee for PAN-Aadhaar linking in case you miss the deadline

Visit the e-Pay Tax functionality section on Income Tax portal 

Provide PAN card number and mobile number for OTP

After verifying OTP, a new window showing different payment titles will appear

Hit ‘Proceed’, select 2023-24 as assessment year, and other receipts (500) as type of payment 

Enter Rs 1,000 as amount under ‘Others’ field in tax break-up and proceed with further steps 

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

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

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

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