Linking PAN-Aadhaar after July 1 to cost you more: How to link PAN with Aadhaar

The deadline to link PAN with Aadhaar was extended from March 31, 2022 to March 31, 2023. Though the deadline to keep your PAN operative without linking it to your Aadhaar, linking of PAN-Aadhaar from April 1, 2022, will cost you money. This was announced by the Central Board of Direct Taxes (CBDT) via a notification dated March 29, 2022, and press release dated March 30, 2022

If you link your PAN to your Aadhaar on or before June 30, 2022, you will be charged Rs 500. A fee of Rs 1,000 would be required if the PAN-Aadhaar link is completed on or after July 1, 2022. The fees have now been broken down into their component parts

As per the CBDT press release, "In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated 29th March 2022, a window of opportunity has been provided to the taxpayers up to 31st of March 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. As a result, taxpayers will be required to pay a fee of Rs 500 up to three months from 1st April 2022 and a fee of Rs.1000 after that, while intimating their Aadhaar. However, till 31st March 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc.


How to pay penalty amount
According a recent tweet on the Income Tax Department’s official Twitter account, here’s how to pay the penalty amount.

“Fee of Rs.500 payable if linked up to 30/06/22, else fee payable is Rs.1000. Fees to be paid by Challan No ITNS 280 with Major head 0021 (Income Tax Other than Companies) & Minor head 500 (Fee). Try to link after 4-5 working days from date of payment.”


How to link PAN with Aadhaar
The income tax department offers various ways to link PAN with Aadhaar. These include on the income tax e-filing portal, SMS, manually by visiting NSDL/UTIIL offices.

Also read: How to link PAN with Aadhaar?


Why you should link PAN with Aadhaar
If the PAN is not linked with Aadhaar by March 31, 2023, then next year starting April 1, 2023, your PAN will become inoperative. Once your PAN becomes inoperative, you will not be able to file income tax return, open a bank account, invest in mutual funds etc.

As per income tax laws, it is mandatory for every person having PAN as on July 1, 2017 and eligible to obtain Aadhaar number, to intimate his/her Aadhaar number to the prescribed authority on or before the prescribed date (March 31, 2022 as per earlier government diktat). On failure to do so, his/her PAN will become inoperative and all procedures in which PAN is required shall be halted. As per the earlier notification, the PAN could have been made operative again after March 31, 2022 upon intimation of Aadhaar to the prescribed authority after payment of a prescribed fee (up to Rs 1000)

The income tax department can also levy a penalty under section 272B of up to Rs 10,000 for not having active PAN. However, now this will be levied if PAN becomes inoperative after March 31, 2023 as a result of not linking it to Aadhaar.