Is your PAN active? What will happen if you miss to link PAN Aadhaar after December 31

As the last date of December 31 for connecting PAN with Aadhaar is approaching, a lot of taxpayers are still wondering about the status of their PAN. Not linking your PAN can cause it to become non-operative, which will in turn affect tax refunds, TDS rates, and other financial transactions.

Here is a step-by-step guide on linking PAN to Aadhaar, checking the status of the online link, and informing you of the possible implications if you have not done the linking yet.

How to link PAN with Aadhaar?

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According to the ITR department, both registered and unregistered users can link their Aadhaar and PAN on the e-filing portal, even without logging in. You can use the quick link Link Aadhaar on the e-Filing home page to link Aadhaar and PAN.

A step-by-step guide on how to link PAN with Aadhaar online:

The original free window to link PAN with Aadhaar ended on May 31, 2024. Anyone linking it now has to pay a late fee of Rs 1,000.

1) Visit the Income Tax e-filing portal

2) On the homepage, go to quick links and click on 'link Aadhaar'

3) Enter your PAN, Aadhaar, and other necessary details required, then click on 'validate'

4) Enter the 6-digit OTP received on the mobile number mentioned and complete the Rs 1,000 payment as per the instructions.

5) After the payment is successfully processed, wait for a few days for verification.

6) Once verified, visit the e-filing portal again, go to Quick Links → Link Aadhaar, and enter your PAN and Aadhaar details again.

7) A pop-up message will appear stating 'your payment details are verified," and then click continue

8) Enter your name as per Aadhaar and your mobile number

9) Review the details, and click link Aadhaar

10) Enter the 6-digit OTP received on your mobile number and click validate to complete the linking process

How to check PAN Aadhar link status?

Step 1: On the e-Filing Portal homepage, under Quick Links, click Link Aadhaar Status.

Step 2: Enter your PAN and Aadhaar Number, and click View Link Aadhaar Status.

On successful validation, a message will be displayed regarding your Link Aadhaar Status.

What will happen if you don't link Aadhaar and PAN?

Your PAN will become inoperative if you do not link it with Aadhaar till December 31 and shall face the following consequences as a result of PAN becoming inoperative:

1) refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made to him;

2) interest shall not be payable to him on such refund for the period, beginning with the date specified under sub-rule (4) of rule 114AAA and ending with the date on which it becomes operative;

3) where tax is deductible under Chapter XVJJ-B in case of such person, such tax shall be deducted at higher rate, in accordance with the provisions of section 206AA;

4) where tax is collectible at source under Chapter XVJJ-BB in case of such person, such tax shall be collected at higher rate, in accordance with the provisions of section 206CC.