Deadline For PAN-Aadhaar Linking Expires: Here's What To Do If Your PAN Becomes Inoperative

The deadline for linking Permanent Account Number (PAN) with Aadhaar expired on June 30, 2023, and it is essential for individuals to ensure that their PAN is linked with Aadhaar to avoid any inconvenience or penalties. The government had previously extended this deadline numerous times, but not this time. A person's PAN will stop working as of today (July 1, 2023) if they have not yet connected it to their Aadhaar.

The measures people can take to get their PAN operable again if it has been inoperative have been clarified by the Central Board of Direct Taxes (CBDT) in a notification dated March 28, 2023.

You won't be able to use some services where you must declare the number specifically if the PAN becomes inoperative. Additionally, unless your PAN and Aadhaar have been connected, you cannot file your income tax return (ITR).

"The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs.1,000," the income tax department had said.

This implies that in order to reinstate the PAN, you must pay a fine of Rs 1,000. The PAN won't become operational again for 30 days after the date of connection.

How to make payment for penalty to link PAN with Aadhaar?

• Visit income tax e-filing website
• Log in to your account
• Select the "Link PAN with Aadhaar" option.
• Enter all the necessary information.
• Use e-Pay Tax to complete the payment process.
• Enter your mobile number after entering the "PAN" number in the "PAN/TAN"
• Confirm PAN/TAN" columns
• Click the "Continue" button.
• Select 2023-24 as the assessment year, and other receipts (500) as the payment type before pressing "Proceed".
• The 'Others' option will already have the amount filled in. Make the payment by clicking the 'Continue' button.

What will happen if PAN becomes inoperative?

According to the advisory issued by the Income Tax Department, if your PAN becomes inoperative, you will lose the ability to provide, disclose, or mention your PAN, and you will be held responsible for all the consequences resulting from this failure. Some of the consequences faced by an individual if the PAN becomes inoperative:

• TDS and TCS will be withheld at a greater rate.
• No refund will be paid against such PANs
• No interest will be charged on that return for as long as the PAN is inactive.