Only 2 days left to link PAN with Aadhaar – Missing the deadline will lead to PAN deactivation and more

• If you are facing any difficulty in PAN-Aadhaar linking due to a discrepancy in information, you need to resolve the issue.
• That can be done by updating the relevant information in your Aadhaar and PAN card, either through online channels or by visiting authorised Aadhaar and PAN service providers.
• The IT department has cautioned that if individuals do not link their Aadhaar number with PAN by the due date, their PAN will become inoperative.

The Finance Ministry had extended the deadline to link one’s Permanent Account Number (PAN) with Aadhaar until June 30, 2023. The earlier deadline was March 31. Starting July 1, an individual’s PAN will become inoperative if it is not linked to Aadhaar.

To link PAN with Aadhaar, you need to pay a fine of ₹1,000. This can be done on the NSDL portal. It's important to note that the Income Tax department will not process tax returns until your PAN and Aadhaar are linked.

Penalty for not linking PAN and Aadhaar

The IT department has cautioned that if individuals do not link their Aadhaar number with PAN by the due date, their PAN will become inoperative.

This will restrict them from using PAN for filing returns, processing pending returns, issuing refunds, completing pending proceedings, deducting taxes at a regular rate, and may also create challenges with banks and financial platforms due to PAN's significance as a vital know-your-customer (KYC) criterion for financial transactions. Not being able to file returns will be a serious handicap as the last day for filing returns is July 31.

Also, as per Section 272B of the Income Tax Act, if an individual fails to quote or furnish her PAN as required by the Income Tax Law, a penalty of ₹10,000 can be levied. This penalty can be imposed for each instance of non-compliance with the PAN quoting requirement.

Resolving discrepancies

The IT department recently acknowledged in a tweet that many individuals are encountering difficulties when attempting to link their PAN-Aadhaar due to discrepancies in name, date of birth and gender. The department suggests individuals update any relevant information in their Aadhaar and PAN card either through online channels or by visiting authorised Aadhaar and PAN service providers.

The tweet also highlights an additional measure taken to facilitate the linking process: the introduction of biometric-based authentication, which can be accessed at dedicated centres of PAN Service Providers (Protean & UTIITSL).

According to the Unique Identification Authority of India (UIDAI), updating address details on Aadhaar can be done online through the Self Service Update Portal (SSUP). However, for updating other details such as demographic information (name, address, date of birth, gender, mobile number, email) and biometrics (fingerprints, iris and photograph) in Aadhaar, it is necessary to visit a Permanent Enrolment Centre.

PAN details can be updated by visiting the National Securities Depository Limited (NSDL) PAN website - onlineservices.nsdl.com/ or the UTI Infrastructure Technology And Services Limited (UTIITSL) website- pan.utiitsl.com.