Here are the consequences of not linking your pan and aadhaar

Every individual who has been allotted a PAN as of July 1, 2017 and is eligible to obtain an Aadhaar number, shall link PAN with Aadhaar

The Income Tax Department in a recent notification had asked the taxpayers to link their Permanent Account Number (PAN) with Aadhaar by May 31, 2024 to avoid tax deduction at a higher rate.
 

According to the regulations if a taxpayer’s PAN is not linked with his or her Aadhaar, Tax Deducted at Source (TDS) is mandated to be deducted at twice the usual rate.

 

Consequences of non-linking:

 

If PAN is not linked with Aadhaar by the deadline, the PAN card becomes inoperative. This means that: 

 

No refunds will be made against such PANs. 

 

TDS (Tax Deduction at Source) and TCS (Tax Collection at Source) will be deducted/collected at a higher rate. 

 

The PAN card will stop working, leading to difficulties in financial transactions.

 

How to check PAN-Aadhaar link status?

 

Visit the Income Tax Portal

 

Go to the official website: www.incometax.gov.in.

 

Navigate to ‘Our Services’

 

Scroll down the homepage until you find the section titled ‘Our Services’.

 

Select ‘Link Aadhaar-- Know Your Aadhaar-PAN Link Status’

 

Click on this option to proceed

 

Enter PAN and Aadhaar Details

 

Provide your PAN (Permanent Account Number).

 

Enter your Aadhaar number

 

Check Status

 

Click on the ‘View Link Aadhaar Status’ button.

 

View Status

 

The next screen will display whether your PAN and Aadhaar are linked

 

Steps to link PAN with Aadhaar 

 

Online Linking: To link PAN with Aadhaar after the deadline, you need to: 

 

Pay the penalty through the e-Pay Tax functionality on the Income Tax e-Filing website. 

 

Submit the Aadhaar linking request on the e-Filing portal.

 

Pan Aadhaar Link Fees/Charges 

 

If you want to link your PAN and Aadhaar card post the deadline, you will be required to pay a penalty of Rs 1,000 when you raise a request for the same via the Income Tax website.

 

Exempt Categories: 

 

Certain categories are exempt from the PAN-Aadhaar linking requirement:

 

Individuals residing in the states of Jammu and Kashmir, Assam, and Meghalaya.

 

Non-resident taxable persons as per the Income-tax Act, 1961.

 

People aged more than 80 years (Super Senior Citizens).

 

Persons who are not citizens of India.