Aadhaar-PAN linking FAQ: How to make PAN 'operative' now, steps to pay penalty and more

Yes, your PAN would be invalid now.

As per section 139AA of the Income Tax Act 1961, it was mandatory to link your Aadhaar number with Permanent Account Number (PAN) by June 30, 2023.

As per the CBDT guideline, if it is not linked, PAN becomes inoperative from July 1, 2023.

There will be many instances where you might face challenges now such as routine banking transactions like depositing of more than Rs 50,000 in a bank account or payment of insurance premium exceeding Rs 50,000.

You can also face issue in carrying out financial transactions such as mutual fund investments or stock trading.

Your income tax return (ITR) may also not be processed.

Yes, if someone failed to link Aadhaar and PAN by June 30, 2023, and wishes to link it at a later date, they can do so after payment of the penalty.

According to the income tax department, a PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of a fee of Rs 1,000.

This means if someone raises the request to link on July 6, the PAN will start functioning only by August 5.

This can be done on the National Securities Depository Limited (NSDL) portal by paying the amount under Challan No.

ITNS 280 with Major head 0021 (Income Tax Other than Companies) and Minor head 500 (Other Receipts).

No.

The income tax department has issued a clarification that individuals who have paid a penalty for linking the two and consent has been received but linking is not done till June 30, 2023, such cases will be considered by the income tax department before making the PAN inoperative.

The 'exempt category', according to a notification issued by the Union Finance Ministry in May 2017, are those individuals residing in the states of Assam, Jammu and Kashmir and Meghalaya; a non-resident as per the Income-tax Act, 1961; of the age of 80 years or more at any time during the previous year and a person not a citizen of India.

The process remains the same.

Visit the official e-filing website of the Income Tax (I-T) Department to link the two.

When it asks for payment, click on the link and you will be redirected to NSDL website.

Under the options available, proceed under Challan No.

ITNS 280 to submit PAN-Aadhaar link request.

Select the tax applicable from there.

The payment should be done under Major head 0021 (Income Tax Other than Companies) and Minor head 500 (Other Receipts) in a single challan.

Select the preferred payment mode and enter details.

Enter PAN, address and assessment year.

Enter the Captcha and make payment.

This payment may require some time to display at the income tax e-filing portal.

Once there is confirmation, you can login to the income tax portal, enter all details (name, date of birth, address, PAN and Aadhaar number) and proceed with the linking.

Yes, you can.

There are both online and offline methods available for users to check the status of the linking process.

These methods provide a convenient way to confirm whether the PAN and Aadhaar numbers have been successfully seeded together.

For the same, visit Income Tax e-filing website and go to Aadhaar status.

Enter PAN and Aadhaar Number.

Click on 'View Link Aadhaar Status'.

The status of the linking will be displayed in the next screen.

Yes, you might face difficulties due to demographic mismatches such as differences in name, date of birth, gender, etc., between the two cards.

To address this issue, the Income Tax Department has provided a solution.

You can visit dedicated centres of PAN Service Providers (Protean & UTIITSL) where biometric-based authentication can be utilised to resolve the failure caused by demographic mismatches.