PAN Aadhaar linking last date – Update 2024

The Income Tax Department has reminded taxpayers to link their PAN with Aadhaar by May 31, 2024, to avoid higher tax deductions at source (TDS) or tax collected at source (TCS).
PAN Aadhaar linking last date
3 min
04-July-2024

A PAN card is one of the most critical documents for carrying out any financial activity. Be it for opening a bank account or buying mutual fund units, quoting a valid PAN is mandatory. However, a PAN card only proves an individual's financial identity. Another government-issued document, the Aadhaar card, is used to prove an individual's general identity. Hence, the Indian government has made it mandatory for Indian citizens to link their PAN cards with Aadhaar cards to ensure better monitoring and financial protection.

To link the PAN with Aadhaar, the government has set a PAN-Aadhaar linking last date, and individuals must link their PAN with their Aadhaar before the due date to avoid penalties. This article will help you learn about the Aadhaar-PAN link last date so that you can avoid paying penalties.

What is the PAN Aadhaar linking last date?

The Indian government and the Central Board of Direct Taxes (CBDT) have set May 31st, 2024, as the last date to link PAN with Aadhaar. If you fail to link your PAN with your Aadhaar before the Aadhaar-PAN card link last date, you will incur penalties and be charged a higher tax deducted at source (TDS) or tax collected at source (TCS) rate. Furthermore, your PAN card will become inoperative, and you will have to pay Rs. 1,000 to activate it again while linking your PAN to Aadhaar.

How to link your PAN to your Aadhaar after deadline?

If you fail to link your Aadhaar to your PAN before the PAN-Aadhaar linking last date, your PAN card will become inoperative, and you will find it difficult to execute financial transactions. However, you can still link your PAN to your Aadhaar after the deadline using the following steps:

Payment of penalty

Step 1: Visit the income tax e-filing portal.

Step 2: Navigate to the ‘Quick Links’ tab and click the ‘e-pay Tax’ option.

Step 3: Under ‘PAN/TAN,’ enter your PAN number and enter it again under the ‘Confirm PAN/TAN’ column. Enter your mobile number and click on the ‘Continue’ button.

Step 4: Enter the OTP received on your mobile number, and you will be redirected to a new e-pay Tax page. Click on the ‘Continue’ button here.

Step 5: Select ‘2024-25’ as the assessment year and select ‘Other Receipts (500)’ under the ‘Type of Payment (Minor Head). Select ‘Fee for delay in linking PAN with Aadhaar’ and click the ‘Continue’ button.

Step 6: You will see the amount of Rs. 1,000 as a late fee under the ‘Others’ tab. Click the ‘Continue’ button and pay the applicable fee.

Also read about: How to check mutual fund status with folio number

How to submit online/offline requests for linking of Aadhaar number and PAN?

You can link your PAN and Aadhaar by either logging into your account on the e-filing portal or without logging into your e-filing portal account:

Method 1 - Logging into your account

Step 1: Visit the Income Tax e-filing portal and create an account if you do not have an existing account. Once registered, log in to your account using your user ID, PAN number, and password.

Step 2: After logging in successfully, click the ‘Link Aadhaar’ tab, navigate to the ‘My Profile’ section, and click on ‘Link Aadhaar’ present under the ‘Personal Details’ option.

Step 3: Enter your current Aadhaar number and click the ‘Validate’ button.

Step 4: A pop-up message will appear informing you that you have successfully sent a request to link your PAN with your Aadhaar.

Once you have successfully sent the request to link your PAN with your Aadhaar and re-activate your PAN card, the UIDAI will process the request and review all the information you provided. The process usually takes 7-30 days from the date of submitting the request to UIDAI.

Method 2 - Without logging into your account

Step 1: Visit the Income Tax e-filing portal, navigate to the ‘Quick Links’ section, and click the ‘Link Aadhaar’ button.

Step 2: Enter your current PAN and Aadhaar number and click the ‘Validate’ button.

Step 3: Enter your name as written on the Aadhaar card and Aadhaar-linked mobile number and click on the ‘Link Aadhaar’ button.

Step 4: Enter the OTP received on your mobile number and click the ‘Validate’ button.

Step 5: Your request to link PAN with Aadhaar will be sent to UIDAI, and you will receive a pop-up. This happens if your payment details are already verified on the e-filing portal. If not, you will need to make the payment.

Step 6: After validating the PAN and Aadhaar details, you will see another pop-up message with ‘Payment details not found.’ Click on the ‘Continue to Pay Through e-Pay Tax’ button and pay the required late fee of Rs. 1,000.

Step 7: Once you have successfully made the payment, it will take 4-5 days for your payment to be processed. Only after the payment is successfully processed can you request to link PAN with Aadhaar.

Also read about: How to do mutual funds KYC

What are the consequences of not linking PAN with Aadhaar?

Here are the consequences of not linking PAN with Aadhaar before the Aadhaar-PAN link last date:

  • TDS/TCS will be deducted/collected at a higher rate.
  • The PAN card will become inoperative after May 31st, 2024.
  • Taxpayers will not be able to file their income tax returns.
  • The Income Tax Department will not process any pending returns, and taxpayers will not receive the pending refunds.
  • Taxpayers will not be able to see their TCS/TDS certificates, and TDS/TCS credit will not be available on Form 26AS.
  • Taxpayers will not be able to submit Form 15G/15H to avoid TDS payments.
  • Individuals will not be able to use their PAN cards. Most financial activities will become unavailable, such as opening a bank account, purchasing mutual fund units, and bank transactions exceeding Rs. 10,000.

Who needs to link Aadhaar and PAN?

Here are the individuals who are required to link their Aadhaar to their PAN:

1. Resident individuals

All resident individuals in India who have a PAN and an Aadhaar card need to link the two. This includes salaried individuals, professionals, self-employed individuals, and others with a PAN and Aadhaar.

2. Individuals filing income tax returns

If you are an earning individual and required to file an ITR, it is mandatory to link your PAN with your Aadhaar.

3. Individuals executing financial transactions

Those who engage in financial transactions that require quoting the PAN number, such as opening a bank account, buying or selling property, investing in securities, etc., must link their PAN with their Aadhaar.

4. Individuals applying for loans

If you are applying for a loan, banks and financial institutions may require you to link your PAN with Aadhaar as part of the KYC (Know Your Customer) process.

Also read about: Income tax slab for FY 24-25

Why is PAN-Aadhaar linking important?

PAN-Aadhaar linking is important for the following reasons:

1. Income tax filing

You must link your PAN with Adhaar if you want to file your income tax returns. Furthermore, linking is crucial if you want to receive TDS/TCS refunds.

2. PAN deactivation

Linking PAN to your Aadhaar is important to avoid PAN deactivation. With a deactivated PAN card, you won’t be able to carry out most financial activities.

3. Access to government services

Linking PAN with Aadhaar is often required to access various government services and subsidies. Thus, PAN-Aadhaar linking is vital to access such services.

4. Transparency

Linking PAN with your Aadhaar allows for better transparency in financial transactions and ensures that Indian citizens are accountable for fulfilling their tax liabilities. It also helps prevent tax evasion and money laundering as the government can track and monitor financial transactions.

Conclusion

Linking PAN with Aadhaar is now mandatory, and failing to do so results in the PAN becoming inoperative, making it difficult to carry out further financial activities. Hence, you should ensure that you have linked your PAN to your Aadhaar before the Aadhaar-PAN card link last date. However, if you missed the deadline, you can still link your PAN with your Aadhaar by following the steps mentioned above and paying the late fee of Rs. 1,000.

Once you link your PAN to Aadhaar, you can seamlessly invest in various instruments. If you are considering investing in mutual funds, look no further than the Bajaj Finserv Platform. It is designed with unique investing tools, such as a mutual fund calculator, that can help you compare mutual funds and invest in the most suitable mutual fund schemes.

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Frequently asked questions

What will happen if the PAN card is not linked with Aadhaar?
If your PAN is not linked with your Aadhaar, you may face a higher TDS/TCS deduction. Your PAN card will also become inoperative, and you will have to pay Rs. 1,000 as a late fee and must activate the PAN again during the linking process.
How can you pay the penalty for the Aadhaar-PAN linkage?
You can pay the penalty of Rs. 1,000 for the Aadhaar-PAN linkage by visiting the income tax e-filing portal and starting the process of linking your PAN with your Aadhaar. Before you submit the request, you must pay the required late fee.
Who is exempted from linking Aadhaar with PAN?
Non-resident Indians (NRIs), individuals not citizens of India, such as foreign nationals, super senior citizens over the age of 80, and residents of Assam, Meghalaya, and Jammu & Kashmir, aren’t required to link their Aadhaar with PAN.
What is the TDS rate if PAN and Aadhaar are not linked?
A higher TDS rate of 20% is applicable if you have not linked your PAN with your Aadhaar.
How many people have not linked Aadhaar with PAN?
As of January 2024, 11.48 crore Indian citizens, excluding the exempted categories, have not linked their PAN with Aadhaar.
How can I check if my Aadhaar is linked to my PAN card through SMS?
You can check if your Aadhaar is linked to your PAN through SMS. Go to your messaging app and draft an SMS using the following format: “UIDPAN <12-digit Aadhaar number> <10-digit PAN number>”. Send the SMS to 56161 or 567678. You will receive a confirmation if your Aadhaar is linked to your PAN.
Why has the Centre made PAN-Aadhaar linking necessary?
One of the main reasons for making PAN and Aadhaar linking mandatory was to avoid tax evasion and financial fraud through duplication of PAN cards.
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The information contained in this article is for general informational purposes only and does not constitute any financial advice. The content herein has been prepared by BFL on the basis of publicly available information, internal sources and other third-party sources believed to be reliable. However, BFL cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. 

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