Government Notification:
The Government of India has made it mandatory for every person who has been allotted a Permanent Account Number (PAN) and is eligible to obtain an Aadhaar number to link their PAN with Aadhaar. This move is aimed at promoting transparency and accountability in financial transactions and also to curb tax evasion. As per the Central Board of Direct Taxes (CBDT) circular F. No. 370142/14/22-TPL dated on 30th March 2022, every taxpayer who has been allotted a PAN as on 1st July 2017 is required to link their PAN with Aadhaar on or before 31st March 2023.
The PAN Aadhaar linkage is a simple process and can be done online through the income tax department’s e-filing website. Taxpayers can also link their PAN with Aadhaar by visiting any of the authorized PAN service centers or designated offices of National Securities Depository Limited (NSDL) or UTI Infrastructure Technology And Services Limited (UTIITSL) in India.
Penalty
As per the government’s directive, taxpayers who fail to link their PAN with Aadhaar on or before 31st March 2023 will be liable to pay a non-refundable fee of Rs. 500 till 30th June 2022. Thereafter, a fee of Rs. 1000 will be applicable before submission of PAN-Aadhaar linkage request. Therefore, it is advisable for taxpayers in India to complete their PAN Aadhaar linkage before the deadline to avoid any inconvenience.
Disadvantage
It is important for taxpayers to link their PAN with Aadhaar as failing to do so can result in some significant disadvantages. Firstly, not linking PAN with Aadhaar can result in the PAN becoming invalid. This means that the taxpayer will not be able to use the PAN to conduct any financial transactions, such as opening a bank account, filing tax returns, or making investments. Additionally, if the PAN becomes invalid due to non-linkage with Aadhaar, the taxpayer may face legal penalties for using an invalid PAN. Another disadvantage of not linking PAN with Aadhaar is that the taxpayer may not receive any tax refunds due to them as the government will not be able to process their tax return without a valid PAN. Hence, it is highly recommended for taxpayers to link their PAN with Aadhaar to avoid any such disadvantages
We are Help
TaxKitab is a service-based company in Pune, Maharashtra, that provides consultancy in GST, income tax, company registration, ROC compliance, trademark registration, startup consultancy, GST compliance, and direct and indirect taxation in India. They also provide part-time and full-time accounting and bookkeeping services worldwide with the best industrial software. TaxKitab has been helping taxpayers in Maharashtra to link their PAN with Aadhaar in a hassle-free manner. Taxpayers can visit their website, www.taxkitab.com, to get more information about the process of PAN Aadhaar linkage and to avail of their services.
conclusion
In conclusion, the government’s mandate of linking PAN with Aadhaar is a step towards ensuring transparency and accountability in financial transactions. Taxpayers in India should make sure to complete their PAN Aadhaar linkage before the deadline to avoid any Inconvenience. TaxKitab, with its expertise in taxation and accounting, can be a valuable resource for taxpayers who need assistance in completing their PAN Aadhaar linkage.
Frequently Asked Questions
What happens if my PAN is not linked with Aadhaar?
Your PAN becomes inoperative. That can hold up income tax refunds, and TDS or TCS may be deducted at a higher rate on payments to you.
How do I check whether my PAN is linked?
Use the Link Aadhaar Status option on the income tax e-filing portal. It works without logging in, using just your PAN and Aadhaar numbers.
Is there a fee to link now?
Yes. Linking after the deadline requires paying a late fee before the link request can be submitted.
My name is different on PAN and Aadhaar. What now?
The link will fail on a mismatch. Correct the details on one of the documents first so that name, date of birth and gender match, then submit the link request.
Is anyone exempt from linking?
Certain categories are, including non-residents and some senior citizens. Check whether an exemption applies to you before assuming it does.
Related Reading
- The New Income Tax Act, 2025: What Actually Changed
- New vs Old Income Tax Regime: Which One Should You Choose?
- Form 16/16A Mismatch on TRACES
Need help with this? TaxKitab handles Income Tax Return Filing for businesses across India and overseas. You may also find our Managed Compliance useful. Talk to us.
