The former deadline of 31 March 2023 has been replaced with a new deadline of 30 June 2023 for linking PAN and Aadhaar. This has been done to provide taxpayers additional time to link their PAN to their Aadhaar without suffering any consequences. Taxpayers who have not linked their PAN to their Aadhaar will no longer be able to use it as of July 1, 2023. The following effects will occur if the two are not connected:
No refunds of income tax will be issued in relation to such PANs. For the time that the PAN is inactive, there will be no interest charged on refunds. Moreover, a higher rate will be withheld from tax collected at the source and tax deducted at the source. With the submission of an Aadhaar application to the required authority and payment of a cost of ₹1,000, the PAN may be made operational once more.
However, some people are exempt from PAN and Aadhaar linkage. This includes those who live in particular states, are not residents, are not Indian citizens, or were 80 years of age or older at any point in the previous year.
How to link PAN and Aadhaar?
- By doing the following, PAN and Aadhaar can be linked online:
- Register on the income tax filing website by opening it. You will log in with your PAN.
- User ID, password, and birthdate must be entered to log in.
- You’ll see a pop-up window asking you to link your PAN and Aadhaar. If not, choose “Link Aadhaar” from the option under “Profile Settings” on the menu bar.
- Name, birthdate, and gender will all be provided in accordance with PAN information.
- Checking your Aadhar information to the PAN information presented on the screen. Please take note that if there is a discrepancy, the same needs to be addressed in both documents.
- Input your Aadhaar number and click “link now” if the data is correct.
- A pop-up message informs you that your PAN and Aadhaar have been linked successfully.
Because of this delay, taxpayers would have three extra months to link their PAN to Aadhar. It should be remembered that the Government has previously prorogued the date for tying PAN and Aadhar together.