Aadhaar-PAN Linked: Not PAN-Aadhaar Linked? This is what happens when PAN becomes inactive

Pan-Aadhaar LinkingThe Central Board of Direct Taxes, or CBDT, has made it mandatory to link a person’s Permanent Account Number, or PAN, with his Aadhaar number. It confirmed through a notification almost two years ago that a citizen’s PAN, if not linked to Aadhaar within the time limit, would become inoperative – a move that would have multiple consequences. Currently, the deadline for linking PAN with Aadhaar is March 31. The CBDT has also clarified that for those who link their PAN with Aadhaar after the deadline, the PAN “will be activated from the date of intimation of Aadhaar number”.

The last date for linking PAN with Aadhaar has been updated several times. The CBDT had last confirmed the results in February 2020, but later extended the deadline to March 31, 2022. The CBDT, in a notification, said considering the representations received from various stakeholders, it has been decided to extend the timeline for compliance under the Income Tax Act.

Describing the cases on which this implementation is applicable and elaborating on the extension of time limit, the government body said, “The deadline for intimation of Aadhaar number to the Income Tax Department for linking PAN with Aadhaar is September 30, 2021. has been increased from. Till March 31, 2022.”

If you do not link your PAN with Aadhaar even after the expiry of the time limit, your PAN will become inoperative and you will have to face many consequences. For one, the government has added a new section 234H- under the Income Tax Act, 1961. It enables the authorities to impose fine on the person for not working within the due date. However, this fine cannot exceed Rs 1,000, the CBDT clarified.

Also, a person whose PAN is not linked with Aadhaar will not be able to do any financial transaction using this document. It is to be noted that for many financial transactions it is necessary to quote your PAN, and thus if it becomes inactive then the transaction cannot be completed. For example, if you have an inactive PAN, you will not be able to open a bank account and buy or sell properties.

The CBDT has said that if you link your PAN and Aadhaar after the due date, the government is eligible to levy penalty on the process of linking. Hence, it is advisable to link PAN Aadhar before March 31, 2022.

There are two ways in which you can link your PAN with your Aadhaar card. One way is to do it through SMS and the other through the official portal of Income Tax Department.

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