Pan Aadhaar Link New Deadline: What Happens If not Linked?

In India, linking your Permanent Account Number (PAN) with Aadhaar has been a mandatory requirement for taxpayers since 2017. This integration helps the government streamline tax processes, prevent fraud, and ensure seamless financial transactions. But with multiple deadline extensions, many are still wondering: What’s the current PAN Aadhar link last date? And more importantly, what happens if you miss it? In this quick guide, we’ll break it down step by step.

Understanding PAN-Aadhaar Linking: Why It Matters

PAN is your 10-digit alphanumeric identifier for tax purposes, while Aadhaar is a 12-digit unique ID issued by the Unique Identification Authority of India (UIDAI). Linking the two creates a unified database, making it easier for the Income Tax Department to track income, deductions, and refunds.

As per Section 139AA of the Income Tax Act, 1961, linking is compulsory for most individuals (exceptions include NRIs and those over 80 without Aadhaar). Failure to link can lead to significant hurdles in your financial life.

Last Date to Link Aadhar and PAN

The last date to link PAN and Aadhaar is December 31, 2025 for those who obtained their PAN using an Aadhaar enrolment ID between October 1, 2024 and December 31, 2025; for most others, the deadline was May 31, 2024.

Step-by-Step Guide to Link PAN with Aadhaar

• Visit the Income Tax e-filing portal (incometaxindia.gov.in).
• Click on “Link Aadhaar” under the Quick Links section.
• Enter your PAN, Aadhaar number, name (as per Aadhaar), and mobile number.
• Pay the late fee (if applicable) via net banking or UPI.
• Submit and verify with the OTP sent to your registered mobile.

What Happens If PAN Is Not Linked to Aadhaar?

As of July 1, 2023, an unlinked PAN becomes “inoperative,” as per CBDT rules. Here’s what that entails:

• Tax Filing Issues: You won’t be able to file your Income Tax Return (ITR) electronically. This could delay refunds and attract penalties for late filing (up to ₹10,000 under Section 234F).

• Financial Transactions Halted: Banks and financial institutions may restrict services. For example:

1. Can’t open new bank accounts or demat accounts.
2. Mutual fund investments, stock trading, or property transactions could be blocked.
3. Credit card applications or loan disbursals might be rejected.

• Higher TDS/TCS Rates: Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) will be deducted at double the normal rate. For instance, if TDS on salary is usually 10%, it could jump to 20% without a linked PAN.

• No Refunds or Credits: Pending tax refunds won’t be processed, and you can’t claim TDS credits in your ITR.

• Legal Penalties: While there’s no jail time, repeated non-compliance could lead to fines under the IT Act. In extreme cases, it might flag your profile for scrutiny.

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