How to make PAN operative if it has become inoperative?

The due date to link your PAN with Aadhar was June 30, 2023, which has now expired.

Well, this time the government didn’t give any extensions, unlike before. So, If you haven’t linked your PAN with Aadhaar yet, your PAN would have become inoperative, starting from July 1, 2023.

However, you can make your PAN operative again, by paying a late fee of ₹1000/- and linking your PAN with Aadhaar. The process will take up to 30 days from the date of linking, for instance, if you initiate the linking process on July 11 (after paying the penalty), your PAN will become operative on or before August 10.

What are the consequences of having an inoperative PAN?

There will be numerous implications such as, TDS/TCS will be deducted/collected at higher rates, you cannot claim any refunds against such PAN if paid excess taxes, and will not get any interest on such refund.

Additionally, it may restrict access to financial services like opening a bank account, opening a demat account and making investments, getting credit/debit cards, engaging in property transactions, etc.

So, It is important to ensure that your PAN remains active and operative to avoid such consequences.

How to pay a penalty to link PAN-Aadhar?

You can now pay the penalty and link PAN-Aadhar by pre-login (before logging into the income tax portal).

  1. Visit Home | Income Tax Department and click on Link Aadhaar in the Quick Links section.
  2. Enter your PAN and Aadhaar number
  3. Click on Continue to Pay Through e-Pay Tax.
  4. Enter your PAN, confirm PAN and mobile number to receive OTP.
  5. After the OTP verification, you will be redirected to e-Pay Tax page
  6. Select the Income Tax tab and click Proceed
  7. Select Assessment Year as 2024-25 and Type of Payment as Other Receipts (500) and click Continue.
  8. On the next screen, the applicable amount will be pre-filled against Others.

Once the payment is done, you can link your PAN-Aadhar on the e-Filing Portal

Here’s how you can Link PAN card with Aadhaar card : Step-by-step process - Learn by Quicko


What if payment for the PAN-Aadhaar Linking has already been made but not reflected in the e-Filing Portal?

After making the payment for PAN-Aadhaar linking on the e-Filing portal, it may take a few days for the payment to reflect in the system, it is recommended to wait for 48 hours after the payment. Challan details will also get updated in AIS. In case you are still not able to submit the request, you should check whether the payment has been made under minor head code 500 or not. If yes, then you may raise a grievance to ITD.

I cannot link my PAN-Aadhar as there is a mismatch in my name/date of birth/gender in Aadhaar and PAN. What should I do?

In such a case, you need to correct the details in either your PAN or Aadhaar database to ensure they match. To rectify the discrepancy, you can contact the appropriate authorities.

For PAN correction, you can go to PAN Service portal and can correct your Aadhaar details on UIDAI website.

Is Aadhaar-PAN linking mandatory for filing Income tax Return?

No, Aadhaar-PAN linking is not mandatory to file your ITR but not be eligible to receive any income tax refunds.

Also, Check PAN Aadhaar Link Status Online | Quicko in order to avoid these consequences.

If any questions, let us know!

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