The Income Tax department on Saturday said that it is mandatory to link permanent account number (PAN) with Aadhaar by March 31, 2023. It added that the unlinked PAN will become inoperative from April 1, 2023. "What is mandatory, is necessary. Don't delay, link it today!" the department said in a public advisory.
"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 1.04.2023, the unlinked PAN shall become inoperative," it said.
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.
While the deadline to link the two without any fine has ended, taxpayers can do the same by paying a fine of Rs 1,000.
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).
Here is a step-by-step process to pay PAN-Aadhaar linking late fees:
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.
Step 2: Under the options available, proceed under Challan No. ITNS 280 to submit PAN-Aadhaar link request
Step 3: 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
Step 4: Select the preferred payment mode and enter details
Step 6: Enter PAN, address and assessment year
Step 7: Enter the Captcha and make payment
This payment may require some time to display at the income tax e-filing portal. So, if you want to link PAN with Aadhaar should wait a few days after making the payment.
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
Here are the services that may get impacted in case PAN is not linked with Aadhaar:
ITR returns will not be processed
Bank account savings will be impacted
This will also lead to an individual’s KYC being incomplete as a PAN card is one of the necessary documents required for the completion of KYC. This will, in turn, impact one's bank account savings.
Additionally, if the individual earns interest on savings above Rs 10,000, then the tax deducted at source (TDS) rate levied will be 20 percent as TDS levied on a bank account without a PAN card is doubled.
First Published: Dec 24, 2022 5:37 PM IST
