Income tax dept issues warning about not linking PAN with Aadhaar by this date

The income tax department has issued a warning to taxpayers who are yet to link their PAN with their Aadhaar. As per the latest update on the tax department’s e-filing website, “All PAN holders, who do not come under the exempt category as per Notification No. 37/2017, dated 11th May, 2017 and have not linked their Aadhaar with PAN yet, are requested to do so immediately. Failure to do so will lead to the unlinked PAN becoming inoperative.”

The last date to link PAN with Aadhaar is March 31, 2023. The income tax department has issued the same warning from their official Twitter account. The tweet reads:
As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar before 31.3.2023. From 1.4.2023, the unlinked PAN shall become inoperative. The last date is approaching soon. Don’t delay, link it today!

Hence, if the PAN is not linked with Aadhaar by the due date of March 31, 2023, then the PAN will become inoperative.

Do note that now there is a penalty applicable for linking PAN with Aadhaar. If an individual links her PAN with her Aadhaar now, then she is liable to pay a late fee of Rs 1,000 as the date for linking without penalty is past.

Hence, before you visit the income tax e-filing website to link PAN-Aadhaar, ensure that you have paid the penalty for the same.

Steps to pay penalty for linking PAN with Aadhaar

Before you start the process of paying penalty to link your PAN with your Aadhaar, ensure that you have following:

• Valid PAN number
• Valid Aadhaar number
• Valid mobile number

Follow the steps below to pay penalty for linking PAN with Aadhaar

Step 1: Visit TIN (egov-nsdl.com) for an e-payment of a late fee of Rs 1000.

Step 2: Select the ‘Proceed’ option in non-TDS/TCS category Challan no./ITNS 280.

Step 3: On the new webpage that opens, select ‘Tax applicable – (0021) – Income tax (other than companies)’ and type of payment ‘500 (other receipts)’.

Step 4: Enter the other required details such as PAN, assessment year (2023-24), mode of payment (Net Banking/Debit card), Address, email, and mobile number.

Step 5: Enter the captcha code and click on ‘Proceed’ to complete the payment.

Once the payment is made, you will need to wait for 4-5 days to link your PAN with your Aadhaar, says the income tax dept website.

After 4-5 days, visit the income tax e-filing website to link your PAN with your Aadhaar. The steps to link PAN with Aadhaar are – Login on the e-filing portal > On Dashboard, under the Link Aadhaar to PAN option, click Link Aadhaar.

While linking your PAN with your Aadhaar ensure that your payment details are matching. If there is any discrepancy, then you need to lodge a grievance or contact the e-filing helpdesk for the same.

What will happen if your PAN becomes inoperative

If your PAN becomes inoperative from April 1, 2023, then you will not be able to use your PAN wherever it is mandatory. This includes the opening of bank accounts, demat accounts etc.

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This will happen if PAN becomes inoperative