Earlier, the tax department frequently reminded people about linking Aadhaar with PAN by 31 Mar 2020. They have notified that it is mandatory to link Aadhaar with PAN and advised people that they should not miss the stipulated deadline of 31 March 2020.
But, following the lockdown imposed by the Government of India due to the Coronavirus Pandemic, Finance Minister Nirmala Sitharaman announced an extension. She said, “the deadline for Aadhaar-PAN card linking has been extended to 30 June 2020 in the wake of the Covid-19 pandemic in India.”
This extension will be a relief for those who have not yet linked their Aadhaar with PAN. According to the current income tax laws, not linking them both will lead to the PAN becoming inoperative.
What is Meaning of Inoperative PAN?
According to the Central Board of Direct Taxes (CBDT), the notification dated February 13, 2020, the term ‘inoperative PAN’ would mean that an individual does not have a PAN. So, those who do not have a PAN will not be able to make any kind of financial transactions where PAN is required.
The CBDT further gave a clarification in detail stating that the inoperative PAN will be operative, and individuals can make all kinds of financial transactions if they link both their Aadhar and PAN. However, you may not be able to make transactions immediately after you link Aadhaar with PAN. Economic Times, in their recent report, said that you may be fined INR 10,000 if you use inoperative PAN.
Other consequences that you will face with an inoperative PAN include: Unable to furnish tax returns, failing to purchase mutual funds or purchase of a property.
How to link Aadhar with PAN on Income tax website?
Follow these simple steps to link your Aadhar with PAN:
Step 1: Visit www.incometaxindiaefiling.gov.in.
Step 2: Click on the ‘Link Aadhaar’ option on the left side of the homepage under the “Quick Links” section.
Step 3: Enter details for all the mandatory fields. PAN, Aadhaar Number, and your Name as per AADHAAR.
Step 4: Tick ‘I have the only year of birth in Aadhar card, in case you have only the year of birth on your Aadhaar card.
Step 5: Tick ‘I agree to validate my Aadhar details with UIDAI,’ if you agree to do so.
Step 6: Enter the displayed captcha code on your screen.
Step 7: Finally, click the ‘Link Aadhaar’ button to request linking of Aadhaar with PAN.
How to link Aadhaar with PAN by sending an SMS?
Type UIDPAN and send an SMS to 567678 or 56161 from your registered mobile number.
How to check the status of PAN-Aadhaar linking?
Step 1: Visit http://www.incometaxindiaefiling.gov.in/aadhaarstatus
Step 2: Enter your PAN number and Aadhaar Number
Step 3: Click on the “View Link Aadhaar Status” button.
The status will be displayed immediately.