PAN Aadhar not linked

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Late fees for non linking of PAN with Aadhar

PAN aadhar link due date extension

As per the statutory provisions every person having PAN (Permanent Account Number) should link it with Aadhar on or before 31/03/2022. On failure to link PAN and Aadhar , PAN will be inoperative.  his PAN shall become inoperative and all procedures in which PAN is required shall be halted. The PAN can be made operative again upon linking of Aadhaar to PAN & after payment of a prescribed fee.

In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated 29th March, 2022, a window of opportunity has been provided to the taxpayers up to 31st of March, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. I.e. Non linking of PAN & Aadhar will not make PAN inoperative up to 31/03/2023, however after 01/04/2022 late fees will be levied for linking PAN & Aadhar.

Quantum of late fees u/s 234H of Income Tax Act: 

1. PAN-Aadhar linked between 01/04/2022 to 30/06/2022 Rs: 500/- 

2. PAN-Aadhar linked on or after 01/07/2022 Rs: 1000/-

A detailed Circular No.7/2022 dated 30.03.2022 has also been issued in this regard.

After 31st March, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers. 

Implications of Non linking of PAN with Aadhar such as:-

(i) The person shall not be able to file return using the inoperative PAN

(ii) Pending returns will not be processed

(iii) Pending refunds cannot be issued to inoperative PANs

(iv) Pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative

(v) Tax (TDS/TCS) will be deducted at a higher rate as PAN becomes inoperative

(vi) The tax payer might face difficulty like at banks and other financial portals, as PAN is one of the important KYC criterion for all kinds of financial transactions.

(vii) Demat A/c will be inactive etc.

Here is the Notification No: 17/2022 & Circular 07/2022 of the Income Tax Act:

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