Yet to link your PAN (permanent account number) and Aadhaar? You need to hurry and complete the process before June 30. Not taking action in time will result in your 10-digit PAN becoming inoperative from July 1.
Moreover, there will be other repercussions too. If the tax department owes you a refund for excess taxes paid, the refunds will not be issued, and if any interest is due on such an amount, it will not be paid for the period during which PAN remains inoperative.
Also, tax deducted at source (TDS) and tax collected at source (TCS) will attract higher rates.
ALSO READ: TCS, TDS are not lost forever; you can claim the amounts back
An inoperative PAN will mean that you will not be able to file your income tax returns. The linkage is also required as per the Securities and Exchange Board of India (SEBI) rules to invest in mutual funds and stocks.
You can seed your Aadhaar with PAN through the income tax e-filing website (incometax.gov.in). You will, however, pay a late fee of Rs 1,000 before commencing the process.
Also read: PAN-Aadhaar linking deadline extended till June 30
Here’s how you can complete the process:
1. Step one is to check whether you have already completed the process. You can visit the e-filing portal
2. If you have not completed the process, visit the portal to link your Aadhaar with PAN
3. Enter your PAN and Aadhaar details
4. If the two are linked, you need not take action
5. If they aren’t, then you will have to log in to www.incometax.gov.in (your PAN will be your user ID)
6. Go to e-file > e-pay tax > New payment
7. Choose the 'income tax' tab, select 2024-25 as the assessment year
8. Select type of payment as ‘Other receipts (500)’ and continue
9. You can view the pre-filled amount of Rs 1,000; click on continue
10. Choose your bank account and proceed to complete the payment
11. You can download the challan by clicking on e-File > e-Pay Tax > Payment History
12. Next, click on the ‘Link Aadhaar’ tab on left hand side menu of the e-filing portal’s homepage
13. Enter your PAN and Aadhaar and validate the information
The earlier deadline to complete the process was March 31, 2023, which was extended to June 30 by the income tax department. The deadline has been extended several times in the past, but it is best not to rely on a repeat of such extensions.
If you happen to miss this deadline, you can make your PAN operative again within 30 days by seeding your Aadhaar and paying a penalty of Rs 1,000.
However, those who are not mandated to complete this linking process will not have to face any consequences. “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,” the income tax department circular issued in March 2023 said.
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