If your PAN number has become inactive due to the lack of linkage to the Aadhaar card, there is no need to worry. You can complete the PAN-Aadhaar linking process online from home by paying a fixed fee of 1000 rupees to restore the functionality of your PAN.
Importance of PAN and Aadhaar Linkage
In the modern world, where the Aadhaar card is an important document and PAN is necessary for most financial transactions, linking these two identifiers becomes mandatory. According to Section 139AA of the Income Tax Act, 1961, relevant taxpayers are required to link both documents.
Consequences of No Linkage
Mismatch between PAN and Aadhaar leads to the deactivation of PAN, which negatively affects not only tax matters but also all financial transactions. With an inactive PAN, taxpayers cannot receive income tax refunds, nor do they receive interest on delayed refunds. Furthermore, there is a risk of facing increased TDS and TCS rates.
Who Must Perform the Linkage
For new PAN applicants, the linkage process to Aadhaar happens automatically. However, those who received their PAN before July 1, 2017, must complete this procedure through the electronic filing portal. Since the deadline has passed, it is now possible to activate PAN by linking it with Aadhaar by paying the prescribed fee of 1000 rupees. This rule also applies to PAN holders who initially obtained their number using the Aadhaar registration ID.
Required Documents and Payment
To perform the PAN-Aadhaar linkage procedure after the deadline, you need to have your PAN number, Aadhaar number, and a registered mobile number ready to receive a One-Time Password (OTP). A fee of 1000 rupees is charged for this service, which is paid through the Electronic Filing Portal.
Procedure for Paying the Delay Penalty
The process is quite simple: on the electronic filing portal, navigate to the 'Quick Links' section and select 'Link Aadhaar'. After entering and verifying the PAN and Aadhaar details, choose the 'Continue to Pay' option via e-Pay Tax. An OTP will be sent to the registered number, which you must enter, and then proceed to the payment page. Select the financial year, click 'Fee for Delay in Linking PAN-Aadhaar', and make the payment of 1000 rupees by choosing a convenient payment method.
How to Link Aadhaar to PAN
After successful payment, the taxpayer can submit the linkage request through the electronic filing portal. You need to click 'Link Aadhaar' on the portal, enter the PAN and Aadhaar numbers, verify the payment details, and submit the application, completing authentication via OTP. The taxpayer can check the status of their account linkage on the same portal by selecting 'Aadhaar Link/View Status'. Then, enter the PAN and Aadhaar numbers and click 'View Link Aadhaar Status' to see the relevant details.