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Deadline to link PAN with Aadhaar

As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar on or before June 30, 2023 (30.06.2023).

As per the CBDT circular F. No. 370142/14/2022-TPL dated 28th March 2023, person who has failed to intimate the Aadhaar number in accordance with section 139AA of the Income-tax Act, 1961shall face the consequences of the PAN becoming inoperative.

The consequences of PAN becoming inoperative shall not be applicable to those persons who have been exempted from linking PAN-Aadhaar.

Who is liable to link PAN with Aadhaar?

Taxpayers who have been allotted a PAN as on 1st July 2017 and are not exempted from linking are liable to link PAN with Aadhaar.

The following categories of persons are exempted from PAN-Aadhaar linking

  • NRIs
  • Not a citizen of India
  • age > 80 years as on date
  • state of residence is ASSAM, MEGHALAYA, or JAMMU & KASHMIR

How to pay the fee (penalty) for linking PAN and Aadhaar?

Rs. 1000 non-refundable late fee or penalty has been prescribed for PAN-Aadhaar linking

Please pay the applicable non-refundable fee of Rs. 1000 to be paid through e-Pay Tax service option available on Income Tax Portal.

Please make sure fee payment is done under Minor head 500Other Receipts(500) and Major head 0021 [Income Tax (Other than Companies)].

The Income Tax department has posted a tweet regarding this. It’s an urgent notice, a reminder by Income Tax India.

Consequences of Not Linking PAN with Aadhaar

From 1st July 2023, all the unlinked PAN shall become inoperative. It’s an Urgent Notice from the Income Tax department. So, don’t delay, link it today or last by 30th June 2023.  

So, if you have a valid PAN card then you must link it with Aadhaar by 30/06/2023. PAN of taxpayers who have failed to intimate their Aadhaar, as required, will become inoperative and the consequences will be as follows:

  • No refund against such PANs;
  • interest shall not be paid on such refund for the period during which PAN remains inoperative; and
  • TDS and TCS shall be deducted /collected at a higher rate, as provided in the Act.

Apart from that, the pan holder shall not be able to file returns using the inoperative PAN, Pending returns will not be processed.

About Shubham Anand

Shubham Anand, the founder of TaxWinner.in, is a Chartered accountant, law graduate and personal finance & technology enthusiast. He loves writing about taxes, personal finance, tax planning, the latest technology, and much more. With a passion for technology and the intricacies of personal finance, he believes that financial literacy is the ultimate life hack.

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