PAN-Aadhaar linking deadline: Has the last date been extended?

The deadline to link PAN with Aadhaar was June 30, 2023. It was extended from the previous deadline of March 31, 2023 by the Central Board of Direct Taxes (CBDT) via a press release dated March 28, 2023. The income tax department has not issued any press release or circular to confirm if this deadline has been further extended from June 30, 2023

PAN-Aadhaar linking fine

If the PAN-Aadhaar linking is done on or after July 1, 2022, a Rs1,000 penalty will be levied. It must be paid in a single challan before submitting your request for an Aadhaar-PAN linkage on the e-filing portal

Consequences of not linking

From July 1, 2023, the PAN of taxpayers who have failed to link their Aadhaar, as required, shall become inoperative. The consequences during the period that PAN remains inoperative will be as follows:

• No refund shall be made against such PANs;
• Interest shall not be payable on such refund for the period during which PAN remains inoperative; and
• TDS and TCS shall be deducted /collected at higher rate, as provided in the Act
• After informing the prescribed authority and paying a cost of Rs.1,000, the PAN can be made operational again in 30 days.

For whom is Aadhaar-PAN linkage not compulsory?

Aadhaar-PAN linkage requirement does not apply to any individual who is:

• Residing in the States of Assam, Jammu and Kashmir, and Meghalaya;
• A non-resident as per the Income-tax Act, 1961;
• Of the age of eighty years or more at any time during the previous year; or
• Not a citizen of India.

The Income Tax administration stated that anyone who fall into one of the aforementioned categories can voluntarily link their Aadhaar with PAN and consequences will not be applicable to them.

Who should link

According to Section 139AA of the Income Tax Act, any person who was granted a permanent account number (PAN) as of July 1, 2017 and is eligible for an Aadhaar number must submit his Aadhaar number in the manner and form prescribed by law. Simply put, such persons are required to link their Aadhaar and PAN.

How to pay penalty to link PAN with Aadhaar

Here is how to link PAN-Aadhaar with penalty, according to the Income Tax website.

Step 1: Login https://www.incometax.gov.in/iec/foportal/, on Dashboard, in Profile Section under the Link Aadhar to PAN option, click Link Aadhar.
Step 2: Enter your PAN and Aadhar Number.
Step 3: Click on Continue to Pay Through e-Pay Tax.
Step 4: Enter your PAN, confirm PAN and mobile number to receive OTP.
Step 5: Post OTP verification, you will be redirected to e-Pay Tax page
Step 6: Click on Proceed on the Income Tax Tile.
Step: 7 Select AY as 2024-25 and type of Payment as Other Receipts (500) and click Continue.
Step 8(a): Applicable amount will be pre-filled against Others.
Post payment of fee you can link your Aadhaar number with PAN on the e-Filing Portal.