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PAN-Aadhaar Linking for TDS deduction

Khush Trivedi , Last updated: 08 April 2024  
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We all know due date has arrived for deposition of Tax deducted at source for the month of March i.e. 30th April 2024. It is important to understand the consequences for deduction of TDS of deductee whose Pan Aadhaar is not linked.

What is non-linking of Aadhaar PAN?

Section 139AA mandates that linking of PAN with Aadhaar is mandatory for all taxpayers to provide the Aadhaar card details when filing their income tax returns. The IT department issued a circular that it is mandatory for all PAN-holders (except those who fall under the exempt category) to link their PAN-Aadhaar within 30th June 2023.

The Income tax Department has issued a circular that it is mandatory for all PAN-holders (except those who fall under the exempt category) to link their PAN-Aadhaar within 30th June 2023. Initially the due date for linking the Aadhaar pan was 31st March 2022 and then extended it to 30th June 2022. However, people who linked their PAN-Aadhaar between 1st July 2022 to 30th June 2022 had to pay a fine of Rs.500.

Afterwards, IT department extended the last date to link PAN-Aadhaar to 30th June 2023. PAN holders who link PAN-Aadhaar between 1st July 2022 to 30th June 2023 must pay a penalty of Rs.1,000. PAN card will become inoperative from 01st July 2023.

PAN-Aadhaar Linking for TDS deduction

Consequences to be faced on non-linking of Aadhaar PAN

If Aadhaar pan has not linked i.e. Pan has become inoperative then Assessee might face the following consequences:

  • IT return may be rejected due to non linking of Aadhaar PAN.
  • Assessee can not File ITR & claim refunds with in operative PAN.
  • TCS/TDS will be applicable with Higher rates.
  • The TCS / TDS credit will not appear in Form 26AS, and TCS / TDS certificates will not be available.
  • Taxpayers will be unable to submit 15G/15H declarations for nil TDS.

Hence, it is important to link your PAN to Aadhaar card to eliminate these consequences.

 

What if you have still not linked PAN with Aadhaar?

The taxpayers who have not linked their PAN-Aadhaar within the last date of 30th June 2023, can do so by paying a late penalty of Rs.1,000. They must pay the penalty before filing for the PAN-Aadhaar link on the Income Tax website. However, they need to ensure they have a valid PAN number and Aadhaar number to pay the penalty.

How to link Aadhaar PAN?

On failure of non linkage of Aadhaar Pan an Assessee has to pay Rs. 1000 penalty in order to make PAN operative by doing the following steps,

  • Step 1: Visit the Income tax E filling Portal.
  • Step 2: Select E pay tax under quick links & enter your PAN & verify the same.
  • Step 3: After OTP verification click on continue to proceed further.
  • Step 4: Click on the INCOME TAX tab & select AY 24.25 & type of payment as Other receipts (500) and select 'Fee for delay in linking PAN with Aadhaar' and click the 'Continue' button.
  • Step 5: Make payment through available modes.

After 4 to 5 days of payment of the penalty, the Aadhaar Pan linking request has to be submitted on E filling portal using the below steps

 
  • Step 1: Visit Income tax E filling Portal.
  • Step 2: In Quick Links you can find Link Aadhaar option.
  • Step 3: Enter the 'PAN' and 'Aadhaar Number' and click the 'Validate' button.
  • Step 4: A pop-up message stating 'Your payment details are verified' will appear when the penalty payment has been verified. Click the 'Continue' button to submit the linking request.
  • Step 5: Enter the required details & continue with OTP verification once it has been done Aadhar PAN linking request will be submitted.
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Khush Trivedi
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Category Income Tax   Report

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