PAN Adhaar linking deadline expired. Now what to do for linkage?

 What happens if both are not linked?

Users should note that while income tax returns can be filed without linking the two, the department does not process the returns until PAN and Aadhaar are linked. 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.

How to activate an inoperative PAN?

If someone fails to link their 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 3, the PAN will start functioning only by August 2.

Additionally, the income tax department on Friday issued a clarification on Aadhaar-Permanent Account Number (PAN) linking. According to this, 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.

How to pay the fine for linking the two?

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).