Reactivating an Inoperative PAN: Timeframe and Process Explained

Introduction

The Government of India has made it mandatory to link your Permanent Account Number (PAN) with Aadhaar for certain financial transactions. Failure to link them before the deadline can result in the PAN becoming inoperative. However, you can reactivate your PAN by following the prescribed procedure. This article provides step-by-step instructions on how to link PAN with Aadhaar and check the linking status.

Linking PAN Card with Aadhaar

To link your PAN with Aadhaar, you are required to make a payment of Rs. 1,000 through the E-filing portal. Here's the process to activate your PAN after paying the penalty:

1. Visit the e-Filing portal homepage.
2. Click on "Verify Your PAN" on the e-Filing homepage.
3. On the "Verify Your PAN" page, enter your PAN, Full Name, Date of Birth, and Mobile Number.
4. Click on "Continue" to proceed.
5. On the Verification page, enter the 6-digit One-Time Password (OTP) received on your registered mobile number.
6. Click on "Validate" to complete the process.

The PAN can be made operative again within 30 days from the date of intimation of Aadhaar to the prescribed authority, after payment of the penalty. For example, if you request the linking on July 10, your PAN will become operative on or before August 9. Until the PAN becomes operative, certain consequences such as higher Tax Deducted at Source (TDS) on incomes and no income tax refunds may apply.

Checking PAN Validity: To check if your PAN is valid or invalid, follow these steps

1. Go to the Income Tax Department's e-Filing portal homepage.
2. Click on "Verify Your PAN" on the homepage.
3. Enter your PAN, Full Name, Date of Birth, and Mobile Number.
4. Click on "Continue" to proceed.
5. Enter the 6-digit OTP received on your registered mobile number.
6. Click on "Validate" to verify the PAN's validity.

Checking PAN Aadhaar Linking Status: To check the linking status between PAN and Aadhaar, follow these steps

1. Visit the Income Tax Department's official website at incometax.gov.in/iec/foportal/.
2. Open the "Quick Links" section and select "Link Aadhaar Status."
3. Enter your PAN and Aadhaar Card number.
4. Click on the "View Link Aadhaar Status" option.
5. The screen will display the PAN-Aadhaar link status.
   • If your PAN Card and Aadhaar are linked, it will show "linked."
   • If they are not linked, it will provide instructions to link the two cards.

Conclusion

Linking your PAN Card with Aadhaar is crucial to avoid inactivation of your PAN and facing associated consequences. By following the steps mentioned above, you can easily link your PAN with Aadhaar, check the PAN's validity, and verify the linking status between PAN and Aadhaar. Stay compliant with the guidelines provided by the Central Board of Direct Taxes (CBDT) to ensure smooth financial transactions and avoid any inconveniences.

The author is a Chartered Accountant with 2 decades of experience into Accounting, Taxation, Auditing, Risk & Compliance, Credit Controls, Due diligence. Currently, the author is the founder and managing partner at RRL Global services.