Aadhaar-PAN Not Linked? Inactive PAN Won't Allow Tax Refund; Know Consequences Here

PAN- Aadhaar Link: PAN Aadhaar linking refers to the process of linking your Permanent Account Number (PAN) and Aadhaar number in India. PAN is a unique 10-digit alphanumeric code issued by the Income Tax Department, which serves as an identification number for individuals and entities conducting financial transactions. Aadhaar, on the other hand, is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI). It serves as a proof of identity and address for residents of India.

Also Read: Aadhaar-PAN Link Check Online: Easy Steps To Get Status On Your Mobile

Linking of PAN with Aadhaar Number

As per section 139AA in the Income-tax Act, 1961, it is mandatory for every person, who is eligible to obtain Aadhaar, to quote his Aadhaar number while applying for PAN or furnishing return of income with effect from July 1, 2017.

If any person does not possess the Aadhaar Number but he/she has applied for the Aadhaar card then the person can quote the Enrolment ID of Aadhaar application Form in the ITR.

From July 01, 2023, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative and the consequences during the period that PAN remains inoperative will be as follows:

• no refund shall be made against such PANs
• interest shall not be payable on such refund for the period during which PAN remains inoperative; and
• TDS and TCS shall be deducted /collected at a higher rate, as provided in the Act.
• The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs.1,000.

Those persons who have been exempted from PAN-Aadhaar linking will not be liable to the consequences mentioned above. This category includes those residing in specified States, a non-resident as per the Act, an individual who is not a citizen of India or individuals of the age of eighty years or more at any time during the previous year.

Aadhaar PAN Link: Reasons For Which It Is Necessary To Link PAN Card With Aadhaar

If PAN becomes inoperative, you will not be able to furnish, intimate or quote your PAN and would be liable to all the consequences for such failure.

This will have a number of implications such as:

1. You will not be able to file return using the inoperative PAN

2. Pending returns will not be processed

3. Pending refunds cannot be issued to inoperative PANs

4. Pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative

5. Tax will be required to be deducted at a higher rate as PAN becomes inoperative.

Taxpayers Step-By-Step Guide To Check Aadhar-PAN Card Link Status

Step 1: View PAN-Aadhaar link status without signing in on www.incometax.gov.in/iec/foportal/

Step 2: On the e-Filing Portal homepage, go to ‘Quick Links’ and click on Link Aadhaar Status.

Step 3: Enter your PAN and Aadhaar Number, and click on View Link Aadhaar Status.

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

If the Aadhaar-Pan link is in progress, then the below message will appear on the screen;

Your Aadhaar-PAN linking request has been sent to UIDAI for validation. Please check the status later by clicking on ‘Link Aadhaar Status’ link on Home Page.