Deadline Alert: Link PAN and Aadhaar Today or Face Consequences

NEW DELHI: In a crucial announcement by the revenue department of the Ministry of Finance, the Government of India has set June 30 as the deadline for individuals to link their PAN (Permanent Account Number) and Aadhaar cards. This move aims to ensure seamless integration of financial and identification systems, and failure to comply with this requirement may lead to penalties and difficulties in conducting financial transactions.

Earlier, the Aadhaar-PAN linking process was free of charge until March 31, 2022. However, starting from April 1 last year, a fee of ₹500 was introduced, which was subsequently raised to ₹1,000 from July 1, 2022. As the deadline approaches, individuals are urged to complete the linking process by paying the required fee to avoid potential consequences.

According to the Income Tax rules, individuals who fail to link their PAN cards with their Aadhaar cards by the specified deadline will have their PAN cards declared inoperative, effective from July 1, 2023. This inoperability brings several implications:

1. Ineligibility for Refunds: PANs that remain inactive will not be eligible for any sort of refunds. Furthermore, no interest will be paid on such refunds.

2. Higher Deductions: A higher rate will be used to deduct and collect TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) for PANs that are deemed inoperative.

However, there is a chance to reinstate an inoperative PAN card. Individuals can make their PAN operative again within 30 days by notifying the appropriate authorities and paying a fee of Rs. 1000.

To link PAN and Aadhaar cards with the penalty fee, individuals can follow these steps:

1. Visit the official website of the Income Tax Department at https://www.incometax.gov.in/.

2. Click on the "Link Aadhar" option under the "Link Aadhar to PAN" section located in the Profile section of the Dashboard.

3. Enter your Aadhaar Number and PAN.

4. Select "Continue to Pay Through e-Pay Tax" from the menu.

5. Provide your PAN details and validate your PAN and mobile number to receive an OTP (One-Time Password).

6. After OTP verification, you will be directed to the e-Pay Tax website.

7. On the Income Tax Tile, click "Proceed."

8. Choose the Assessment Year 2024-2025 and select "Other Receipts (500)" as the type of payment, then click "Continue."

9. The appropriate fee amount will already be pre-filled under the "Others" category.

10. Once the payment is made, you can link your Aadhaar number and PAN on the e-Filing Portal.

It is crucial for individuals to take immediate action and link their PAN and Aadhaar cards to avoid penalties and ensure the smooth continuation of financial transactions. The deadline of June 30 must be adhered to, as the consequences of non-compliance may impact one's financial activities.

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