PAN-Aadhaar not linked? You could pay double TDS and miss ITR filing

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The Income Tax Department once again appealed to taxpayers to ensure that their Permanent Account Number (PAN) be linked to their Aadhaar card. As per regulations defined by the Central Board of Direct Taxes (CBDT), failure to link the two may render your PAN ineffective. This, in its turn, may trigger tax deduction at a higher rate, refusal to accept refund claims, and even not being able to file income tax returns for Assessment Year 2025–26.

Why it is important for TDS and ITR filing

If your PAN stops working, your financial dealings are personally impacted. The TDS and TCS rates are doubled under Section 206AA and Section 206CC of the Income Tax Act. Your employer, banks, and mutual funds can deduct more taxes, leading to wasteful loss of money. Also, you will not be able to submit your ITR unless your PAN is active and verified.

How to check if your PAN is linked with Aadhaar

Check Aadhaar linking status with PAN by logging on to e-Filing website of Income Tax Department https://www.incometax.gov.in/iec/. Then click on "Quick Links" tab on the home page, then click on "Link Aadhaar Status" then use your PAN and your Aadhaar number to get real-time status.

Steps to link your Aadhaar with PAN

This can be linked up by visiting the e-filing website, clicking on "Link Aadhaar", and providing the PAN, Aadhaar number, and name in Aadhaar, and registered mobile number with Aadhaar. You will receive an OTP to authenticate it. An additional fee of ₹1,000 would be charged if you're doing it after the previous deadline. It can be done through the "e-Pay Tax" facility on the site.

Last date and consequences of late filing

The last date of linking Aadhaar with PAN has not been officially extended for AY 2025-26, yet the lags post-mandatorily scheduled date may result in complications in your tax compliance. If you don't link them within the due time, not only will your PAN be inactive, but you may even receive unnecessary delays in the refund of taxes or in returns processing.

FAQs

Q: Is there a penalty for linking Aadhaar with PAN after the deadline?

Yes, you will have to pay a penalty of ₹1,000 if you link Aadhaar with PAN after the specified deadline. The penalty must be paid before completing the linking procedure.

Q: I can still submit my ITR even if my PAN is not functional?

No, PAN that has not been activated will not enable you to file your income-tax return successfully. In this regard, you have to activate it by linking the Aadhaar first.

Q: What if my PAN is not linked before TDS deduction?

If PAN is not linked with Aadhaar, TDS would be deducted at twice the rate as prescribed under Section 206AA that would also lead to higher tax outgo.