Under Section-139AA of the Income Tax Act, the IT Department states that failure to link PAN with Aadhaar will render your PAN invalid. Consequently, you will be unable to file your income tax return online and your tax refund may be withheld. Additionally, you won't be able to use PAN for any financial transactions.
According to the recent directive from the Government of India, failure to link PAN with Aadhaar will render your PAN card 'inoperative' after June 30, 2023.
Note:
- Following categories are exempted from Aadhaar-PAN linking:
- NRIs
- Not a citizen of India
- Age >80 years as on date.
- State of residence in ASSAM, MEGHALAYA or JAMMU & KASHMIR.
- Without linking your PAN card with Aadhaar, you will not be able to invest in mutual funds, stocks, or open a bank account.
How to Link PAN Card with Aadhaar?
There are two simple ways to link your PAN card with Aadhaar:
Step 1: Using the SMS facility
- Type UIDPAN <12-digit Aadhaar> <Space> <10-digit PAN> on your mobile
- Send it to 567678 or 56161
Step 2: Using the Income Tax e-filing website
- Visit Income Tax Department's official website and scroll down to the 'Our Services' tab.
- Click on "Link Aadhaar" option to open a new page.
- Enter your PAN, Aadhaar number, name as mentioned on the Aadhaar card, and mobile number
.png "Link Aadhaar Number to PAN Card Using the Income Tax e-filing website")
- If your Aadhaar card only mentions the year of birth, select the checkbox indicating “I have only year of birth in Aadhaar card”.
- Tick the box “I agree to validate my Aadhaar details” to validate your Aadhaar details
- Click on "Link Aadhar" tab
- Enter the 6-digit One Time Password (OTP) sent to your mobile number
.png "Link Aadhaar Number to PAN Card Using the Income Tax e-filing website")
- Click on 'Validate' to complete the process
How to Check the Status of PAN Card Link with Aadhaar?
To check the status of your PAN card link with Aadhaar, please follow these simple steps:
- Visit our website and go to the "Important Web-Links" section.
- Look for the option "Check PAN Aadhaar Link Status" and click on it.
- You will be directed to the official website of the Income Tax Department's Aadhaar link status.
- Enter your PAN card number and Aadhaar number in the provided fields.
- Click on the "View Link Aadhaar Status" button.
- The website will display the current status of your PAN card link with Aadhaar.
- If your PAN card is already linked, you will receive a message confirming the successful link, along with the details of your PAN and Aadhaar numbers.
By following these steps, you can easily check the status of your PAN card link with Aadhaar and ensure that the linking process has been completed successfully.
Consequence of not Linking PAN – Aadhaar
Failing to link your PAN card with Aadhaar before the deadline of June 30, 2023, will have several consequences. One major impact is that your PAN card will become inoperative, which can cause disruptions in various services.
An operative PAN card is essential for meeting the Know Your Customer (KYC) norms required by clearing houses, banks, and e-wallets. If your PAN card becomes inoperative, these services will be affected accordingly.
Furthermore, an inoperative PAN card can affect your bank account savings. The interest earned on your savings account will be subject to a higher Tax Deduction at Source (TDS) rate of 20% if your bank account is not linked to PAN card. On the other hand, if your bank account is linked to PAN card, the TDS rate on interest beyond Rs. 10,000 annually is 10%.
In addition, if you fail to link your PAN card with Aadhaar by the deadline and your PAN becomes inoperative, you may be liable for a penalty of Rs. 10,000 under Section 272B of the Income Tax Act. This penalty is imposed when it is assumed that you have not furnished your PAN as required by law.
To avoid these consequences, it is crucial to link your PAN card with Aadhaar before the specified deadline.
An operative PAN card is essential for meeting the Know Your Customer (KYC) norms required by clearing houses, banks, and e-wallets. If your PAN card becomes inoperative, these services will be affected accordingly.
Furthermore, an inoperative PAN card can affect your bank account savings. The interest earned on your savings account will be subject to a higher Tax Deduction at Source (TDS) rate of 20% if your bank account is not linked to PAN card. On the other hand, if your bank account is linked to PAN card, the TDS rate on interest beyond Rs. 10,000 annually is 10%.
In addition, if you fail to link your PAN card with Aadhaar by the deadline and your PAN becomes inoperative, you may be liable for a penalty of Rs. 10,000 under Section 272B of the Income Tax Act. This penalty is imposed when it is assumed that you have not furnished your PAN as required by law.
To avoid these consequences, it is crucial to link your PAN card with Aadhaar before the specified deadline.
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