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December 10, 2022

Warning from the income tax department regarding failing to link PAN with Aadhaar by 31st March, 2023

by CA Shivam Jaiswal in Income Tax

Warning from the income tax department regarding failing to link PAN with Aadhaar by 31st March, 2023

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 Aadhar is March 31 , 2023. The income tax department has issued the same warning from their official Twitter account. 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!

What are the consequences of not linking PAN with Aadhaar?

  • Levy of penalty u/s 234H:  PAN cardholders who fail to link it with their Aadhaar card will have to furnish a huge penalty after the deadline. The Finance Act 2020 has inserted a new Section 234H to levy a fee for default in intimating the Aadhaar number. If a person is required to intimate his Aadhaar under Section 139AA (2) and such person fails to do so, he shall be liable to pay a fee, as may be prescribed, not exceeding Rs 1,000 at the time of making such intimation.
  • PAN Will be Inoperative: The Income Tax Department had said that PAN will become inoperative if not linked with Aadhaar by 1.4.2023. However, it will again become operative once the individual links it with the Aadhaar card. This includes the opening of bank accounts, demat accounts etc.

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

Step 1 : Visit TIN (egov-nsdl .com ) for an epayment 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 ) type of payement ‘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 no .

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

once the payment is done , you will need to wait 4 -5 days to link ypour PAN with Aadhar , says the income tax department webite .

How to link Aadhaar with PAN ?

Using the income tax department’s portal

Step 1: Visit the income tax department’s e-filing portal : http://incometaxindiaefiling.gov.in/

Step 2: Click on the ‘Link Aadhaar’ section on the left.

Step 3: Fill in the PAN number, Aadhaar number, name and the CAPTCHA.

Step 4: Click on the ‘Link Aadhaar’ option. The income tax department will validate your details, thereafter your PAN- Aadhaar linking will be completed.

Using SMS service

The documents can also be linked by sending an SMS to 567678 or 56161 from your registered mobile number after typing UIDPAN and clicking send. The format for the SMS is: Type UIDPAN (12-digit Aadhaar number), put space (10-digit PAN) and send it to 567678 or 56161.

Linking Aadhaar card with PAN manually

In order to link the documents manually, visit a service centre for your PAN card and fill the ‘Annexure-I’ form. Attach the form with a copy of the PAN and Aadhaar cards. For linking the documents manually, a prescribed fee is charged, unlike the online linking which is free.

How you can check the PAN-AADHAAR linking status?

Step 1: Visit the official Income Tax department website

Step 2: Click on the link reading ‘Link AADHAAR status’

Step 3:  You will be redirected to a new page

Step 4: Enter your AADHAAR card and PAN card number. The status will be displayed

How to check the status of interlinking via SMS ?

Step 1: You need to type UIDPAN <12-digit AADHAAR> <10-digit PAN>

Step 2: You can send this message either on 56768 or on 56161

The government has in the past given several extensions to allow people to link Aadhaar and PAN, it appears now they want to penalise those who don’t do it within due date by levying a late fee. Also, as per rule 114AAA, in case where a person is required to furnish or intimate his PAN and the PAN is inoperative, it will be deemed that he or she has not furnished PAN. Under various provisions of the Income Tax Act if a person doesn’t furnish PAN or gives an inoperative PAN he or she may have to a pay a higher TDS (tax deducted at source) or TCS (tax collected at source), and may not be able to file income tax return and may face the consequences of not filing the tax return.

Notification-No.-372017-dated-11th-May-2017

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