PAN Aadhaar link is mandatory

The last date to link PAN Aadhaar has been extended by the government to June 30, 2023, from March 31, 2023, with a penalty fee of ₹1000.
This means that from July 1, 2023, taxpayers will have to face certain consequences for the period the PAN remains inoperative.

  • No refunds shall be issued against such PANs
  • No interest on such a refund will be payable
  • TDS & TCS deducted/collected shall be at a higher rate

However, the PAN can be made operative again in 30 days after payment of a fee of ₹1000

What is PAN?

PAN or Permanent Account Number is a 10-digit unique alphanumeric code issued by the Income Tax Department to all taxpayers. PAN is issued in the form of a card. PAN enables the department to identify/ link all transactions of the PAN holder with the department.

What is Aadhaar?

The aadhaar number is a 12-digit unique number issued by the UIDAI to the residents of India to provide a universal identity accepted across India.

Why link PAN Aadhaar?

  1. Government has made it mandatory: As per section 139AA of the Income Tax Act, which was introduced by the Finance Act 2017, it is compulsory to report Aadhaar for filing an Income Tax Return and for making an application for PAN allotment w.e.f 1st July 2017.
  2. Because Aadhaar holds all the information including biometrics, it simplifies and fastens the ITR processing & verification.
  3. Linking PAN Aadhaar will help the ITD to keep track of all transactions to prevent any fraud or tax evasion.

What if you don’t link PAN Aadhaar?

If PAN and aadhaar are not linked, one will have to face the consequences as mentioned below:

  1. PAN becomes inoperative

If PAN is inoperative, a taxpayer cannot file his ITR, claim any refund, etc. It will also hamper the accessibility of financial services, such as opening a bank account, or a Demat account, getting credit/debit cards, etc. Essentially PAN will not be useful wherever it is used. As a result, an individual will have to:

  • Pay income tax & TDS at a higher rate
  • Pay a penalty for not disclosing the PAN while making a financial transaction
  1. Penalty u/s 234H of ₹1000 of requesting to link PAN & Aadhaar up to June 30, 2023.
  2. Penalty us/ 272B of ₹10,000 for not furnishing PAN and hence not being able to comply with the provisions of section 139A.

While linking is the process for legal requirements, the method also benefits the government & taxpayers.

  • Because the Aadhaar number is now required for most transactions these days, linking it to PAN allows the ITD to see a complete activity trail and quickly spot revenue leakages.
  • Taxpayers can easily e-verify their returns without digital signatures. Also, they have access to their Income Tax Portal even with the Aadhaar number, as PAN Aadhaar is linked.

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

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

Have questions? Shoot’em here.

1 Like

How can i link pan with adhar

Hi @KAMLESH,

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

Hope it helps.

PAN and addhar linking is mandatory . BUT how do i link HUF PAN with the aadhar ; as there is no aadhar for the HUF ?
@Shrutika_Shah
@Yash_Kaviya @Hem_Shah

Hi @HIREiN

As correctly said by you HUF only holds a PAN and not aadhaar.
PAN-Aadharr linking is mandatory only for individuals.

So, you are not required to link HUF PAN & Aadhaar.

Hey @Shrutika_Shah As name is mismatch between the aadhar and pancard I have applied for rectification in pan portal. But status is still showing as under Process at It Dept . What can i do for this to update iT department

Hi @krishna123

You can wait for the initiation from the Income Tax Department.
Also, the due date to link PAN-Aadhaar has now been extended to 30 June 2023.

Or else, you can Submit Track and View Income Tax Grievance on the e-Filing Portal - Learn by Quicko.

I had done the payment For Pan aadhar Linking. The amount Got Debited From My Bank account. No challan can be seen. But when I go to check the status it’s Saying please do the Payment of Rs 1000 again.

Please help

@Shrutika_Shah

I had done the payment For Pan aadhar Linking. The amount Got Debited From My Bank account. No challan can be seen. But when I go to check the status it’s Saying payment Failed. Is there any solution for a refund?

Please help
Thanks

Hi @Marcelia_Aleluia

After making the payment for PAN Aadhar link, it may take a few days for the status to be updated on the e-Filing portal. It is advisable to wait 4-5 days after the payment.

And you may Submit Track and View Income Tax Grievance on the e-Filing Portal - Learn by Quicko.

@Muskan_Balar

It is displaying PAYMENT FAILED still i need to wait for 5 to 6 days to update? Even if so?

@Marcelia_Aleluia

In such a case, you should submit a grievance to the e-Filing portal as they will be able to check the issue and help you better.

@Muskan_Balar

what do I need to attach when filing a grievance regarding my issue?

Please guide me

@Marcelia_Aleluia

The challan should have been generated, if the payment is already done. So showing challan details you can have raised a grievance that the status has not been updated.

As the amount has already been debited from your bank account and challan details have not been generated. In that case, you can connect to your respective bank for the payment issues. Then you may retry doing the payment for the PAN Aadhar link.

there’s a family consisting : husband , wife , child !

can the family open two HUFs ::: 1st HUF as Husband as the kartha AND 2nd HUF as wife as the Kartha ?
@Muskan_Balar
@Hem_Shah
@Shrutika_Shah

Hi @HIREiN

It’s not possible to create multiple HUFs in one family with both husband and wife as a karta.

an NRI can claim the TDS back by filing IT returns… to file return PAN is mandatory… it becomes inoperative if PAN is NOT linked to aadhar… how an NRI can get aadhar if he is NOT staying in India… please clarify…

Hello @Fazlu The requirement of linking Aadhaar with PAN is not mandatory for NRIs.

You can still file your ITR with PAN and there is no need of Aadhaar for NRI tax filing.

We can help you to file your taxes using a tax expert assistance. You can book a MEET using the below link and our expert shall help you to file taxes:

Book a MEET

Thank you.

PAN was made in-operative due to aadhar non-linking. even though PAN was applied as an NRI and in profile it is given as Non-Resident. how do we make this operative ?

Hey @Fazlu

Do you have a valid Aadhaar? If yes, we can help you to link the same and make the PAN operative.