Aadhaar and PAN linking: What will Happen to these Financial transactions if you missed linking?

The PAN-Aadhaar linking deadline is March 31, 2023, and you should check that if your PAN and Aadhaar cards are already linked. According to the Income-tax Act of 1961, it is necessary for all PAN holders who are not exempt to integrate their PAN with Aadhaar by 31.3.2023. If users do not link the two by the deadline, their PAN cards may become inoperative.

What happens if you miss linking the two cards?

• The individual will be unable to file an income tax return using the inactive PAN.
• Pending returns will be ignored.
• Inactive PANs cannot receive pending refunds.
• Pending processes, such as those involving faulty returns, cannot be completed once the PAN is rendered inoperative.
• If PAN becomes inoperative, tax must be deducted at a higher rate.
• Furthermore, the taxpayer may encounter difficulty while doing other financial transactions, such as those with banks, because PAN is a key KYC requirement for all types of financial transactions.
• TCS and TDS deductions will now be taxed at a higher rate.
• Investors will be unable to trade on either the NSE or the BSE. Depositors who deposit more than Rs 50,000 would be unable to open a fixed deposit (FD).
• Depositors will be unable to obtain new debit or credit cards, and mutual fund investors would be unable to redeem their investments.

How to Check Aadhaar PAN linking Status ?

• Visit the Income Tax e-Filing portal.
• Choose Link Aadhaar Status.
• Provide your PAN and Aadhaar number.
• Select Check Aadhaar Link Status.
• If your Aadhaar and PAN are not linked, a pop-up message will appear stating that PAN is not linked to Aadhaar.
• To link your Aadhaar with your PAN, click on the Link Aadhaar button.
• If the cards are connected, the notification will read, Your Aadhaar has been linked with PAN.

How to pay PAN-Aadhaar linking late fees?

• Go to the Income Tax's official e-filing website.
• For payment, Click the link to be taken to the NSDL website.
• Submit a PAN-Aadhaar link request using Challan No. ITNS 280.
• Select the relevant tax and the payment should be made in a single challan under Major head 0021 (Income Tax Other Than Businesses) and Minor head 500 (Other Receipts).
• Choose your preferred payment method and input your information.
• Enter PAN, residence, and tax year.
• Enter Captcha and then proceed to payment.

Who is excluded from the PAN-Aadhaar link?

Indian people above the age of 80 are exempt from linking the two cards. Non-residents and non-citizens are also exempt from linking their PAN and Aadhaar cards.

Why is PAN-Aadhaar linking required?

The fundamental purpose for making the connection of PAN cards and Aadhaar cards obligatory was to prevent PAN card duplication. Several PAN cards issued to the same person result in inaccuracies in tax calculation and collection. It also makes tracking tax evasion harder for authorities. In India, the required connection of the two cards is anticipated to promote compliance and prevent tax evasion.