There have been numerous reports circulating online regarding the deadline for linking PAN with Aadhaar, which is set for December 31, 2024. According to the news reports, if the PAN is not linked to Aadhaar by this date, the government may deactivate it.
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However, according to tax experts, this is false news. Chartered Accountant Naveen Wadhwa, Vice President of Research and Advisory at Taxmann.com, says, “The last date to link PAN with Aadhaar expired on March 31, 2022, as per the March 2022 CBDT circular. If the PAN is not linked with Aadhaar by March 31, 2022, then from April 1, 2022, the PAN is already inoperative. However, the consequences of not linking PAN with Aadhaar came into effect from July 1, 2023, as specified in order F. no. 370142/14/2022-TPL, dated 01-04-2023, along with Rule 114AAA. Hence, if your PAN is not linked with Aadhaar on July 1, 2023, then your PAN is inoperative. However, taxpayers with an inoperative PAN can still link it to Aadhaar by paying a penalty.”
Concurring the view, Abhishek Soni, CEO, Tax2Win.in – an ITR filing website, says, “The CBDT circular in March 2023 has clarified that if the PAN is not linked with Aadhaar by June 30, 2023, then from July 1, 2023, the PAN will become inoperative. However, the current income tax laws allow an individual to make the PAN operative again by paying a penalty under Section 234H of Rs. 1000.”
How to check PAN-Aadhaar linking status
The PAN-Aadhaar linking status can be checked online on the income tax e-filing portal. Follow the steps below to check the PAN-Aadhaar linking status online.
Step 1: Go to www.incometax.gov.in. Under the ‘Quick Links’ option, select ‘Link Aadhaar Status’.
Step 2: Once the ‘Link Aadhaar Status’ is selected, a new webpage will open on your screen.
Step 3: Enter your PAN and Aadhaar details and select ‘View Link Aadhaar status’.
If your PAN is linked with Aadhaar, then a pop-up will appear on your screen showing the same. If the PAN is not linked with Aadhaar, then the same will be shown on the screen.
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How to link PAN with Aadhaar online
If you haven’t linked your PAN with Aadhaar till now, your PAN is now considered inoperative. This means you won’t be able to use your inoperative PAN in situations where it’s necessary to provide one. For example, quoting your PAN is mandatory when opening bank accounts, investing in fixed deposits, or engaging in mutual funds, among other activities.
To link your inoperative PAN with Aadhaar, a taxpayer must first pay a penalty of Rs 1,000 as specified under Section 234H of the Income Tax Act, 1961.
Here is a step-by-step guide for linking PAN with Aadhaar by paying a penalty.
Step 1: Go to incometax.gov.in and select the ‘Link Aadhaar’ under the Quick Links option.
Step 2: A new webpage will open, asking you to enter your PAN and Aadhaar number. A pop-up will open on your screen asking you to pay the penalty through ‘E-pay tax’. Remember, once the penalty amount is paid, it will take 4-5 days to submit a PAN-Aadhaar linking request.
Step 3: Click on ‘Continue to pay through E-pay tax’. You will be asked to enter your PAN and mobile number on the new webpage. Click on Continue. An OTP will be sent to your mobile number. Enter the OTP to proceed further.
Step 4: You will be redirected to the e-Pay Tax page. Select the ‘Income tax’ option and click on Proceed. Enter the details, such as assessment year 2025-26 and Type of Payment (Minor Head) as Other receipts (500). Select the sub-type of payment – Fee for delay in linking PAN with Aadhaar. Click on Continue.
Step 5: Check the payment and click on continue to make the payment. Once the payment is made, an individual can submit the request to link PAN with Aadhaar after 4-5 days.
Step 6: Go to incometax.gov.in and select ‘Link Aadhaar’ option under Quick Links option.
Step 7: Enter your PAN and Aadhaar details and click on Validate.
Step 8: A new webpage will open asking you to enter Name and mobile number. Once the details are entered, click on ‘Link Aadhaar’.
Step 9: Enter the OTP sent to your registered mobile number and click on Validate.Once done, the request for PAN-Aadhaar linking will be sent to the UIDAI for validation.
A taxpayer should check the status of PAN-Aadhaar linking later.
