To enhance efficiency in identity verification for taxpayers, the Indian government has enforced the linking of PAN (Permanent Account Number) with Aadhaar. The initial deadline was 30th June 2023, and from 1st July 2023, unlinked PANs were deemed inoperative. This guide provides a step-by-step process to link Aadhaar with PAN post-deadline, incorporating penalty payment and compliance details with tax regulations.

Latest Update: The deadline for linking was 30th June 2023. As of 1st July 2023, PANs not linked with Aadhaar became inoperative. Taxpayers are reminded to complete this linking by 31st May 2024. Failure to link by this date will result in higher TDS/TCS rates under Sections 206AA and 206CC of the Income Tax Act, 1961, for transactions using an inoperative PAN.

Importance of Linking PAN with Aadhaar: It is mandatory for taxpayers to link their PAN with Aadhaar to eliminate duplicate PANs, enhancing identification accuracy and assisting the government in tracking financial transactions to prevent tax evasion.

Consequences of Non-Linking: An unlinked PAN becomes inoperative, restricting its use for financial activities and attracting higher TDS/TCS rates. Tax returns filed with an inoperative PAN remain unprocessed until the linkage is completed.

Steps to Check if Aadhaar is Linked to PAN

1. Visit the Income Tax e-filing portal.
2. Click ‘Link Aadhaar Status’ under Quick Links.
3. Enter your PAN and Aadhaar number and click ‘View Link Aadhaar Status’.
4. Check the status; confirmation appears if linked successfully.

How to Link PAN with Aadhaar After the Deadline

Two key steps involve paying a penalty and submitting a link request.

Step I: Payment of Penalty

1. Access the Income Tax e-Filing Portal.
2. Click ‘e-Pay Tax’ under Quick Links.
3. Input your PAN number, confirm it, enter your mobile number, and continue.
4. Verify with an OTP sent to your mobile.
5. Proceed to ‘Income Tax’ tab, select the appropriate Assessment Year, and complete the payment.

Payments can be made via net banking, debit card, or authorized banks.

Step II: Submit Aadhaar-PAN Link Request

Online Method (Without Logging in)

1. Visit the e-filing Portal and choose ‘Link Aadhaar’.
2. Enter your PAN and Aadhaar details, validate, and submit.
3. Confirm via OTP and send the request for UIDAI validation.

Offline Method: Visit a PAN service center, fill out forms, provide necessary documents, and submit your application for processing.

Re-Activation of Inoperative PAN

Once the request is submitted, UIDAI processes it. Reactivation of inoperative PAN may take 7 to 30 days, during which financial transactions using PAN are restricted.

Benefits of Linking PAN with Aadhaar

• Prevents tax evasion by tracking transactions.
• Simplifies tax filing processes with faster verification.
• Eliminates duplicate PANs ensuring uniqueness.
• Ensures regulatory compliance, avoiding penalties.

Linking PAN with Aadhaar remains essential for Indian taxpayers. Though the deadline has passed, you can still link by paying a penalty, adhering to outlined procedures to avoid financial encumbrances. Stay compliant to maintain PAN validity and adhere to tax regulations.