Missed Aadhaar-PAN linking deadline? Here’s how you can make your PAN operative

Any individual who failed to link PAN with Aadhaar till June 30 this year, can start the process at a later date. They will have to pay a penalty of Rs 1,000 to make their PAN operative.

The government of India had announced that the last date to link Permanent Account Number (PAN) with Aadhaar was till June 30 this year. If a person missed doing so, then their PAN will become inoperative from July 1, 2023. If the PAN becomes inoperative, individuals will not be able to use their account to avail certain services where the PAN number is a requirement. For example, when filing income tax return (ITR), having your PAN linked with Aadhaar is a must. As per the Income-Tax Act, 1961, it is compulsory for all PAN holders, who don’t fall under the exempt category, to link their account with their Aadhaar number. Failure to do so shall make their PAN inoperative. In case you missed the deadline, there is a way to link your PAN and Aadhaar number even now.

Aadhaar-PAN linking: How To Activate Inoperative PAN?

If an individual failed to link their Aadhaar and PAN by June 30, this year and wishes to do it at a later date, then they can do so after payment of a penalty. The Central Board of Direct Taxes (CBDT), in a notification dated March 28, 2023, clarified that a PAN can be made operative again in 30 days once it has been rendered inactive. This will be done upon intimation of Aadhaar to the prescribed authority after payment of a penalty of Rs 1,000. It will take 30 days from the date of linking to make the PAN operative again.

Under the Income Tax rule 114AAA, if a PAN of a person has become inoperative, they will not be able to provide, intimate or quote their PAN. They shall be liable to all the consequences under the Act. This will have a number of implications such as:

1. Individuals shall not be able to file tax returns using the inoperative PAN.
2. Returns or refunds that are pending will not be processed using inoperative PANs.
3. Pending proceedings of defective returns cannot be completed once the PAN is inoperative.
4. After the PAN becomes inoperative, tax deducted at source (TDS) will be calculated at a higher rate.

Aadhaar-PAN Linking: How To Pay The Penalty?

To pay a penalty for linking PAN with Aadhaar, one can follow this process.

Step 1: Visit the National Securities Depository Limited (NSDL) portal and log in into their account.

Step 2: On the homepage, look for the “Link PAN with Aadhaar” option.

Step 3: Once the required details are entered, you can move forward by paying the amount under Challan No. ITNS 280 with Major head 0021 (Income Tax Other than Companies) and Minor head 500 (Other Receipts).