AADHAAR - PAN Card Linking Latest Update
The deadline for linking Aadhaar and Permanent Account Number (PAN) expired on June 30, 2023. Individuals who failed to link their PAN with Aadhaar by this date will face consequences and will not be able to access certain services that require the mandatory quoting of PAN. Under the Income-tax Act, 1961, it is mandatory for all PAN holders, except those falling under the exempt category, to link their PAN with Aadhaar. Failure to do so will render the PAN inoperative.If someone missed the deadline but wishes to link their Aadhaar and PAN at a later date, they can still do so by paying a penalty. The income tax department allows the reactivation of an inoperative PAN within 30 days of intimation of Aadhaar to the prescribed authority, upon payment of a fee of Rs 1,000. For example, if an individual raises the request to link on July 3, the PAN will become functional again only by August 2.
The income tax department has issued a clarification regarding the linking of Aadhaar and PAN. It states that cases where individuals have paid the penalty but the linking process is not completed by June 30, 2023, will be considered by the income tax department before making the PAN inoperative.To pay the fine for linking the two, individuals can visit the National Securities Depository Limited (NSDL) portal and make the payment under Challan No. ITNS 280 with Major head 0021 (Income Tax Other than Companies) and Minor head 500 (Other Receipts).It is important to note that although income tax returns can still be filed without linking Aadhaar and PAN, the income tax department will not process the returns until the two are linked. Furthermore, incomplete KYC due to the absence of a linked PAN card will have an impact on an individual's bank account savings.Additionally, if an individual earns interest on savings exceeding Rs 10,000, the tax deducted at source (TDS) rate will be 20 percent, as the TDS levied on a bank account without a PAN card is doubled.
Therefore, it is crucial for individuals to ensure the timely linking of their Aadhaar and PAN to avoid any inconvenience, such as incomplete KYC or higher TDS rates. By following the prescribed process and paying the penalty if the deadline is missed, individuals can reactivate their PAN and continue enjoying the benefits and services associated with it.
