The due date of linking Aadhaar and PAN has ended on June 30, 2023, and the government has not announced any extension to the deadline this time. Those who failed to link their PAN and Aadhaar won't be able to use their PAN as it has become inoperative by now.

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As per Central Board of Direct Taxes (CBDT) guidelines, it is mandatory for all the PAN holders to link it with Aadhaar numbers by the due date. The PAN not linked to Aadhaar has become inoperative from July 1, 2023.

What happens if PAN becomes inoperative

 

One will not be able to do a number of activities, especially related to banking and financial services. If your PAN is not linked to Aadhaar you may face problems like:

  • Income Tax Return (ITR) filing will not be allowed using inoperative PAN.
  • Pending returns of the defaulter will not be processed.
  • Pending refunds for the inoperative PANs will not be issued.
  • With an inoperative PAN you may face several problems in bank transactions and in availing loans.
  • However, despite missing the deadline there are many ways you can still link your PAN with Aadhaar and reactivate your inoperative PAN.

How to re-activate an inoperative PAN?

 

Even after the deadline of linking PAN with Aadhaar, you can still do so, but it comes with a fee. According to the Income Tax Department, a PAN can get re-active again in 30 days after disclosure of Aadhaar to the mentioned authority and payment of a penalty fee of Rs 1,000. Hence, if someone puts up the request on July 3, the PAN will be operative again by August 2, after payment of the fee.

In addition to that, the Income Tax Department has announced that it will consider before making PAN inoperative in the cases where individuals have paid the penalty for linking the two documents, but the linking process has not been completed yet.

How to pay penalty for linking PAN and Aadhaar?

 

1.     Login to the Income Tax e-filing portal.

2.     On Dashboard, in Profile Section click on Link Aadhar.

3.     Enter your PAN and Aadhar Number.

4.     Click on Continue to Pay Through e-Pay Tax.

5.     Enter your PAN and mobile number to receive OTP.

6.     After OTP verification it will lead to e-Pay Tax page and click on proceed button.

7.     Select AY 2024-25 and type of Payment as Other Receipts (500) and click Continue.

8.     Post payment of fee you can link PAN with Aadhaar.