PAN-Aadhaar linking: CBDT Puts Clarification on PAN-Aadhaar Linking Deadline

The income tax department has provided a clarification regarding PAN-Aadhaar linking for individuals who have paid the penalty but failed to link them by June 30, 2023. It is crucial to remember that June 30, 2023, was the deadline for linking PAN with Aadhaar. 

Just before the deadline for linking PAN with Aadhaar, the income tax department has released a clarification on its official Twitter handle. This clarification is intended for individuals who are facing challenges in linking PAN with Aadhaar. The deadline for PAN-Aadhaar linking is June 30, 2023.

As per the income tax department's tweet, individuals who have paid the penalty for linking their PAN with Aadhaar and have provided consent, but have not completed the linking process by June 30, 2023, will be reviewed by the department before declaring the PAN as inoperative.

It's crucial to understand that if PAN is not linked with Aadhaar by June 30, 2023, the PAN will become inoperative. Consequently, individuals will not have a valid PAN for mandatory quoting purposes.

The income tax department has noticed cases where individuals faced difficulty in downloading the challan after fee payment for Aadhaar-PAN linking. Here's what you need to know:

• Check the status of your challan payment in the 'e-pay tax' tab on the portal after logging in.
• If the payment is successful, you can proceed to link your PAN with your Aadhaar.
• After successful payment, you will receive an email with an attached copy of the challan.
• For cases where fee payment and consent for linking have been received but linking hasn't been done by June 30, 2023, the department will duly consider such cases.

This clarification was shared by the income tax department on its official Twitter handle.

It is important to understand that if PAN is not linked with Aadhaar by June 30, 2023, the PAN will become inoperative. This has several consequences, including non-processing of income tax refunds, higher TDS and TCS on incomes and expenditures, and restrictions on investments such as bank fixed deposits and mutual fund schemes.

The income tax law mandated the linking of PAN with Aadhaar starting from July 1, 2017. The deadline for this link has been extended multiple times. Moreover, the government introduced Section 234H, which levies the penalties for linking PAN-Aadhaar after the deadline in Budget 2021. Until March 31, 2022, there was no penalty for linking.  

Please be aware that if you do not link your PAN with Aadhaar by June 30, 2023, your PAN will become inoperative. Once your PAN becomes inoperative, certain consequences would be there such as non-processing of income tax refunds, higher TDS and TCS on your incomes and expenditures, and limitations on investing in bank fixed deposits, mutual fund schemes, and other related activities.

 Also Read: Income Tax Compliance Calendar For July 2023