PAN-Aadhaar Link After Due Date: It must be noted that those persons who have been exempted from PAN-Aadhaar linking will not be liable to the consequences.
PAN-Aadhaar Link Update: The last date to link PAN with Aadhaar was June 30, 2023. If you have not linked your PAN with Aadhaar by this date, your PAN was to become inoperative from July 1, 2023. You will not be able to use your PAN for certain financial tasks. The government has not announced any extension of the last date this time, which was expected by many.
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Under the provisions of the Income Tax Act, 1961, every person who has been allotted a PAN as on 1st July, 2017 and is eligible to obtain an Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority. Failure to do so shall attract certain repercussions under the Act. However, there are certain exemptions.
The Finance Act, 2021 inserted a new section 234H in the Act to complete the process of PAN-Aadhaar linking for identifying bogus PANs. This section provides that where a person who is required to intimate his Aadhaar under subsection (2) of section 139 AA fails to do so on or before a notified date, they shall be liable to pay a fee not exceeding a sum of one thousand rupees, as may be prescribed, at the time of making intimation under sub-section (2) of section 139AA after the said date.
PAN-Aadhaar Link: How To Activate Inoperative PAN Card?
If an individual fails to link their Aadhaar and PAN by June 30, 2023 and wishes to link it at a later date, then they can do so after payment of penalty.
If the PAN card has become inoperative, then you have to follow a simple process to make it operational. CBDT circular in March this year has said the PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs 1,000. For example, if you raise a request to link PAN with Aadhaar on July 10, your PAN will start functioning on or before August 9 onwards. However, till the time it is not working, all rules will apply, such as;
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Rule 114AAA of the Income-tax rules provides that if a PAN of a person has become inoperative, they will not be able to furnish, intimate or quote their PAN and shall be liable to all the consequences under the Act for such failure. This will have a number of implications such as:-
- The person shall not be able to file return using the inoperative PAN
- Pending returns will not be processed
- Pending refunds cannot be issued to inoperative PANs
- Pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative
- Tax will be required to be deducted at a higher rate as PAN becomes inoperative
Meanwhile, the income tax department on Friday said it will duly consider cases where linking of PAN with Aadhaar is yet to happen despite individuals giving their consent and having paid the fee till June 30.
The department said instances have come to notice where PAN holders have faced difficulty in downloading the challan after payment of a fee for Aadhaar-PAN linking.
“In this regard, it is to be informed that the status of challan payment may be checked in the ‘e-pay tax’ tab of the portal after login. If payment is successful, then the PAN holder can proceed to link PAN with Aadhaar,” it said.
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“In cases where fee payment and consent for linking have been received, but linking has not been done till June 30, such cases will be duly considered by the Department,” the tweet added.
It must be noted that those persons who have been exempted from PAN-Aadhaar linking will not be liable to the consequences mentioned above. This category includes those residing in specified States, a non-resident as per the Act, an individual who is not a citizen of India or individuals of the age of eighty years or more at any time during the previous year.
