Income Tax Return Filing Due Date July 31: Can Taxpayers File ITR Without Linking PAN With Aadhaar?

The Income Tax Department has reminded the taxpayers to ensure the linking of their Permanent Account Number (PAN) with Aadhaar before May 31, 2024. The failure to do the same could have a significant impact on their income tax return (ITR) filings, the deadline for filing ITR is July 31, 2024.

The Central Board of Direct Taxes (CBDT) highlighted the significance of linking PAN with Aadhaar in a circular dated April 23, 2024 (CBDT Circular No. 6/2024). This circular elaborated on the regulations and potential repercussions of not linking PAN card with the Aadhar.

Who needs to link Aadhaar and PAN?

Section 139AA of the Income Tax Act states that every individual who has been allotted a PAN as of 1st July, 2017 and who is eligible to obtain an Aadhaar number shall link his PAN and Aadhaar in the prescribed form and manner. Individuals who fail to link their PAN and Aadhaar by June 30, 2023 will see their PAN as inoperative. However, individuals who come under the exempted category will not be affected by this.

For whom is Aadhaar-PAN linkage not compulsory?

Aadhaar- PAN linkage is not mandatory to individuals who fall in any of the following category-

1. Residing in the state of Jammu and Kashmir, Assam, Meghalaya
2. An individual who is a non resident as per the the Income Tax Act, 1961
3. The age is eighty years or above at any time during the previous year
4. Not a citizen of India

However, the exemptions provided above are subject to modification, depending on the government notifications on this matter. Any individual who falls in the above category and still wishes to link Aadhaar with the PAN, a specific amount of fee shall be charged.

How to link Aadhaar and PAN?

The registered and the unregistered individuals can link their PAN and Aadhaar on the e-filing portal, even without signing in. The quick link named, Link Aadhaar available on the homepage of the E-filing will help you link PAN and Aadhaar.

What will happen if You don't link Aadhaar and PAN?

Your PAN card will become inoperative if you do not link it with Aadhar before 30 June, 2023. Along with that you shall face the following consequences as a result of an inoperative PAN-

1. Refunds of any tax amount or part thereof due under the Act will not be issued to him.
2. No interest shall be payable on such refund for the duration starting from the date specified under sub-rule (4) of rule 114AAA until it becomes effective.
3. If tax deduction is deductible under Chapter XVJJ-B for such individuals, tax will be at a higher rate as per section 206AA.
4. Similarly, if tax is collectible at source under Chapter XVJJ-BB for such individuals, tax will be collected at a higher rate as per section 206CC.

What Should You Do, If You Are Unable To Link PAN And Aadhaar?

If there is a mismatch in details of phone number, name, date of birth in PAN and Aadhaar, you can correct your details in either Aadhaar or PAN database portal such that both have matching details.

If the linking request is still failing, it is recommended that you utilize the option of biometric-based authentication at specialized centers operated by PAN Service Providers (Protean & UTIITSL). Please ensure to carry your PAN, Aadhaar, a copy of the fee paid challan (Rs.1000/), and avail the service after paying the requisite biometric authentication fee at the center. For information regarding authorized Service Providers for biometric authentication, kindly refer to the respective websites of Protean/UTIITSL.

What should I do if my PAN becomes inoperative?

The consequences of having an inoperative PAN will take effect from July 1, 2023, and will persist until the PAN becomes operational. A fee of one thousand rupees will remain applicable for activating the PAN by providing the Aadhaar number.

For further information, kindly refer to the following circulars-

1. Department of Revenue Notification No 37/2017 dated 11th May 2017"
2. Circular No. 03 of 2023 dated 28th March 2023.
3. Circular No. 03 of 2023 dated 28th March 2023.

The information provided above is for informational and general guidance purposes only. Taxpayers are encouraged to consult relevant circulars, notifications, rules, and provisions of the Income Tax Act for accurate information, interpretations, and clarifications applicable to their specific cases.