What Happens If PAN Card Is Not Linked To Aadhaar Card? FAQs Explained

From 1st July 2023, you will not be able to use your PAN if it is not linked to your Aadhaar and there will be several other consequences too.

In such a case, the person will not be able to furnish, or quote his PAN and shall be liable to all the consequences under the Income-tax Act for such failure.

Anyone who failed to link PAN-Aadhaar by 30 June 2023 can still do so by paying a fee of Rs 1,000 under Section 234H, according to the Income Tax Department.

"As per CBDT circular F. No. 370142/14/22-TPL dated on 30th March 2022, every person who has been allotted a PAN as on 1st July 2017 and is eligible to obtain Aadhaar number is required to link PAN with AADHAAR on or before 31st March, 2022. Taxpayers who failed to do so are liable to pay a fee of Rs. 1000 will be applicable before submission of PAN-AADHAAR linkage request," the Income Tax Department says on its website.

Who needs to link Aadhaar and PAN?

Under Section 139AA of the Income Tax Act, every individual who has been allotted a permanent account number (PAN) as on the 1st day of July, 2017, and who is eligible to obtain an Aadhaar number, shall intimate his Aadhaar number in the prescribed form and manner. In other words, such persons have to mandatorily link their Aadhaar and PAN before the prescribed date.

Aadhaar-PAN linking not applicable to:

• Individuals who are 80 years of age or older.
• Non-residents as per the definition provided in the Income-tax Act.
• Non-Indian citizens.

When will PAN become inoperative?

PAN will become inoperative from 30 June 2023 if it is not linked to Aadhaar.

Can I still link my PAN with my Aadhaar?

Yes. You can still link your PAN with a valid Aadhaar by paying a fee of Rs 1000. This facility will be available only till 30 June 2023.

What is the last date of PAN-Aadhaar linking by paying Rs 1000 fine?

30 June 2023 is the last date for linking PAN-Aadhaar by paying a fee of Rs 1000.

How to pay the Rs 1000 fine?

You can make the payment for PAN-Aadhaar linking through the e-Pay Tax functionality enabled on the e-filing portal.

Where to link PAN-Aadhaar?

You can link your PAN with a valid Aadhaar number by visiting the Income tax website - http://www.incometax.gov.in.

Why PAN-Aadhaar linking is important?

If your PAN becomes inoperative, you will become liable for all the consequences for not furnishing/intimating/quoting PAN in all transactions where you are required to provide PAN.

When will the consequences of inoperative PAN come into effect?

If you do not link your Aadhaar with PAN till 30th June 2023, your PAN will become inoperative.

If PAN becomes inoperative, you will not be able to furnish, intimate or quote your PAN and would be liable to all the consequences under the Act for such failure.

This will have a number of implications such as:

• Refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made;
• Interest shall not be payable on such refund for the period, beginning with the date specified under sub-rule (4) and ending with the date on which it becomes operative;
• Where tax is deductible under Chapter XVIIB in case of such person, such tax shall be deducted at higher rate, in accordance with provisions of section 206AA;
• Where tax is collectible at source under Chapter XVII-BB in case of such person, such tax shall be collected at higher rate, in accordance with provisions of section 206CC.

If the taxpayer has made the payment of some other amount or more than Rs.1000/- under Minor head 500 mistakenly, how to get the refund for the same?

As per the guidelines, there is no provision for refund of fee paid u/s 234H for late linkage of PAN-Aadhaar under the minor head 500.

If, in case Aadhaar-PAN linking fails after payment, will it be required by the taxpayer to make the payment again?

No, the same challan can be considered while re-submitting Aadhaar-PAN linking request.

If taxpayer de-links the Aadhaar, will it be required by the taxpayer to make the payment again?

Yes, if you have linked incorrect Aadhaar with PAN and thereafter got your Aadhaar delinked, you will have to make applicable fee payment again for submitting a fresh PAN- Aadhaar linking request.

I cannot link my Aadhaar with PAN because there is a mismatch in my name/date of birth/gender in Aadhaar and PAN. What should I do?

Correct your details in either PAN (please contact PROTEAN or NSDL) or AADHAR (Please contact UIDAI) database such that both have matching details.