Last date to link your Aadhar card to PAN extended till 30th June 2023. The date extended to link Aadhaar card to PAN. From 1st of July 2023, all the unlinked PAN cards would be inoperable. 

The Permanent Account Number (PAN) card and Aadhar Card are two of the most crucial identification for Indian Citizens. 

PAN is a unique identification and account number issued to citizens and businesses to prevent tax evasion by individuals or entities as well as keep the links to all the financial transactions made by an individual. 

Whereas, the Aadhar card is proof of identity and address across the country that makes a person citizen of India. 

PAN card is issued by The Income Tax Department (IT) of India whereas, the Aadhar card is issued by the Unique Identification Authority Of India (UIDAI). 

The Income Tax Department is governed by the Central Board of Direct Taxes (CBDT), which has made this mandatory to link Aadhar and PAN to regulate and curb tax division. 

Central Board of Direct Taxes (CBDT) has extended the last date to link your Aadhar and PAN card from 31st March to 30th June 2023. 

From the 1st of July, all the unlinked PAN cards will be inoperative. 

Who does not need to link their PAN- Aadhar?

Image Source : The Economic Times

There are a few people who might fall into the exempt category and need not have to link their Aadhaar to PAN within 30th June such as:

  • Individuals residing in States like Jammu Kashmir, Assam, and Meghalaya. 
  • A non-resident taxable person as per the Income-tax Act, 1961.
  • Super Senior Citizens: citizens aged 80 years and above.
  • Non Residents of India. 

Consequences of not linking PAN-Aadhaar:

  • PAN cards will be inoperable if not linked to Aadhar cards before the prescribed date. Unlinked PAN cards will not be applicable to use, present, or communicate any card details.
  • One will not be able to fill ITRs (Income Tax Returns) which will hinder tax returns.
  • Easy access to government services like subsidies, passport applications, and opening a bank account would be challenging.
  • Pending Returns will not be processed, and pending refunds will not be issued
  • TCS/TDS will be available at higher rates, and will not be available in certificates. 
  • The following transactions cannot be done since the PAN card will be inoperative:
  • Open a bank account.
  • Issue of debit/credit cards.
  • Purchase of mutual funds unit exceeding Rs.50,000.
  • Cash deposit with a bank or post office during a day exceeding Rs.50,000.
  • Purchase of a bank draft or pay the order in cash exceeding Rs.50,000 in a day.
  • A time deposit with banks, Nidhi, Non-Banking Financial Corporations (NBFCs), etc., exceeding Rs.50,000 or aggregating to more than Rs.2,50,000 during a financial year.
  • Payment for one or more prepaid payment instruments as defined by the Reserve Bank of India (RBI) through bank draft, pay or, order, or banker’s cheque aggregating to more than Rs.50,000 in a financial year.
  • Sale or purchase of goods or services by any person more than Rs.2,00,000 per transaction 

However, the PAN can be made operative again in 30 days, upon intimation of Aadhaar number to the prescribed authority after payment of fee of Rs.1,000.

Visit: Efiling Income Tax Department link PAN-Aadhar

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