PAN-Aadhaar Linking: What Will Happen If You Miss Deadline To Link Your PAN With Aadhaar Card; Details

JE Business Desk: The government in March 2022 mandated that every person who was allotted a PAN card as on July 1, 2017, will have to link it with their Aadhaar Card. The objective behind this mandate is to establish a distinct identification number for all taxpayers, which will effectively contribute to the prevention of tax evasion.

For this year, the Centre has set a June 30 deadline for the linking of an Aadhaar Card with a PAN Card. Those who fail to link their PAN-Aadhaar by June 30 will have to face various consequences as outlined in the circular issued by the Central Board of Direct Taxes (CBDT), under the provisions of the Income Tax Act. These consequences may have significant implications for individuals who do not adhere to the linking process.

Also Read: Check the step-wise guide on how to link your PAN Card with your Aadhaar Card

Since the last day is approaching, here’s what will happen if you don’t link your two most important documents:

- According to the Income Tax Department, if you do not link your Aadhaar and PAN before the March 31 deadline, then your PAN will become inoperative. "Rule 114AAA of the Income-tax Rules provides that if PAN of a person has become inoperative, he will not be able to furnish, intimate or quote his PAN and shall be liable to all the consequences under the Act for such failure," CBDT circular reads.

- Also, if you link your PAN Card with an Aadhaar card now, then you will be liable to pay a late fee of Rs 1,000 as the last date for linking without penalty was June 30, 2022, which has already passed.

- Filing of income tax returns (ITR) may also become a challenging task for all taxpayers as the ITR department can reject your application and further might prevent you from filing your ITR, potentially hindering your ability to receive a tax refund.

- Not linking your PAN Card and Aadhaar Card can also cause difficulties when trying to access government services, such as obtaining subsidies, applying for a passport, and opening a bank account. If the two documents are not linked, it may be problematic when attempting to make use of these services.

- If your PAN card is lost or damaged, it may get difficult for you to get a new one without linking the two documents. Notably, the government has also made it mandatory to include the Aadhar card number when applying for a new PAN card.