PAN-Aadhaar linking deadline missed? Here is how to activate your inoperative PAN

The deadline for linking PAN (Permanent Account Number) with Aadhaar ended on June 30, 2023. The government has also not yet released any notification regarding the extension of the deadline. Therefore, as per the official guidelines by the Income Tax Department, all PAN cards that are not linked to Aadhaar will become inoperative from July 1. Additionally, people who have missed the linking deadline will also not be able to avail certain services where quoting the PAN is mandatory.

However, if your PAN card has become inoperative, there is a way to reactivate it. Earlier, the Central Board of Direct Taxes (CBDT) issued a notification on March 28, 2023, explaining the steps to make the PAN card operational again.

The notification stated, "To reactivate the PAN card, individuals need to inform the designated authority about their Aadhaar linkage and pay a fee of Rs. 1,000. The reactivation process will take 30 days from the date of linking."

How to check if PAN is valid or not

• Go to the Income Tax filing portal: incometax.gov.in/iec/foportal/
• Look for the "Verify Your PAN" service under the "Quick Links" section and click on it.
• On the "Verify Your PAN" page, provide your PAN number, full name, date of birth, and a reachable mobile number.
• Click on "Continue" to proceed to the verification page.
• Enter the 6-digit One-time Password (OTP) that you received on your mobile number and click "Validate." Remember, the OTP is valid for only 15 minutes, and you have three attempts to enter the correct password.
• If the verification is successful, you will see your PAN status displayed on the screen. If your PAN is still active, the message will indicate, "PAN is active, and the details are as per your PAN."

How to activate the inoperative PAN

As per the notification, individuals who have failed to link PAN with Aadhaar by deadline will have to pay a penalty of Rs. 1,000 in order to reactivate their PAN card. Additionally, the reactivation process will take approximately 30 days from the date of linking to complete the reactivation process and make the PAN card operational again. Which means, if you file for the process of PAN card activation today i.e on July 5, your PAN card will become operative by August 5.

If your PAN has become inoperative, you can activate it after paying a fine.

• Visit incometax.gov.in/iec/foportal/ and navigate to 'e-Pay Tax' to proceed with submission of the Aadhaar-PAN linking request.
• Enter PAN details and look and proceed for CHALLAN NO./ITNS 280 for submission of Aadhaar-PAN linking request.
• Make sure to do fee payment is done under Minor head 500 (Fee) and Major head 0021 [Income Tax (Other than Companies)] in single challan.
• Select mode of Payment
• Enter PAN, select Assessment year and enter the address
• Enter the Captcha code and click Proceed tab.

Notably, the Income Tax department allows you to file income tax returns (ITR) even if your PAN and Aadhaar are not linked. However, the department will not process your return until the two are linked.

Furthermore, the income tax department has issued a clarification regarding the linking of Aadhaar and Permanent Account Number (PAN). It states that individuals who have paid a penalty for linking the two and have provided consent, but the linking process is not completed by June 30, 2023, will be considered by the income tax department before declaring the PAN inoperative.

Why PAN-Aadhaar linking mandatory

The Indian government has made it mandatory to link PAN and Aadhaar for certain services.

• The linking of PAN-Aadhaar helps to prevent tax evasion. By linking PAN and Aadhaar, the government can ensure that all taxpayers are properly identified and that their taxes are being paid correctly.
• PAN-Aadhaar linking also reduces fraud. By linking these two identification numbers, people can save themselves from any identity theft or prevent scammers from opening multiple bank accounts or file multiple tax returns using fake identities.
• Lastly with the linking of PAN-Aadhaar government is aiming to streamline the process of filing taxes and making tax payments.

Consequences of not linking PAN and 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. Failing to do so will render the PAN inoperative. Additionally, not linking PAN with Aadhaar has consequences. For instance, you won't be able to file your income tax returns (ITRs), open a bank account, or invest in certain financial products. Additionally, you may face a higher tax deduction rate on your savings interest.