Pan Aadhaar Linking / पैन आधार लिंकिंग

PAN AADHAAR LINKING / पैन आधार लिंकिंग

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For existing PAN holders, who were allotted PAN on or before 01-07-2017 it is mandatory to link PAN with Aadhaar. The Link Aadhaar service is available to individual taxpayers (both registered and unregistered online). If you do not link your PAN with the Aadhaar till 30th June 2023, your PAN will become inoperative. However, people who fall under the exempted category will not be subject to the effects of PAN becoming inoperative.

User needs to enter PAN (Permanent Account Number) and Aadhaar (Unique Identification Number) and tool will verify the same using Income Tax Department service and show if PAN Aadhaar is linked or not. There can be 3 types of status:
1. Aadhaar is linked with PAN
2. Aadhaar is not linked with PAN
3. Aadhaar is linked to some other PAN
In case your PAN is not linked to Aadhaar, user can click on option Link PAN with Aadhaar, and the tool will navigate user to e-filing portal and adding the certain details on portal, Pan and Aadhaar can be linked.
PAN shall become inoperative post June 30, 2023 in case your PAN is not linked to Aadhaar and thus would restrict you to make all the necessary financial transactions where PAN is mandatory.

What is the last date to link PAN with Aadhaar?

The Income Tax Department has extended the last date to link your PAN with Aadhaar from 31st March 2023 to 30th June 2023. However the last day to link PAN and Aadhaar without fees was 31st March 2023. Now a fees of INR 1,000 is to be paid for linking PAN with Aadhaar.

When will my PAN become operative after linking it with Aadhaar?

PAN will become operative again within 30 days from the date of Aadhaar PAN linking request.

Is it mandatory to link PAN with Aadhaar?

Yes, in case you do not do by 30th June, 2023, PAN will become inoperative from 1st July, 2023.

Can I file my Income Tax Return if my PAN is not linked with Aadhaar?

Yes, you can file the ITR by entering the Aadhaar number while filing the ITR however ITD will take that ITR under processing only after your PAN is linked with Aadhaar.

Is it required for NRIs to link PAN and Aadhaar?

No, only resident Indians can get an Aadhaar number so it is not required for NRIs to link their PAN with Aadhaar.

Linking of AADHAAR with PAN is MANDATORY

Every person who has been allotted a Permanent Account Number (PAN) and is eligible to obtain Aadhaar number, must link their PAN with Aadhaar as per provisions of Section 139 AA of the Income Tax Act 1961. Further non linking of PAN with Aadhaar shall make PAN “inoperative" and TDS / TCS would be deducted /collected at Non PAN rate (including cash withdrawal) , Form 15G/H with inoperative PAN will not acceptable Existing Form 15 G / H becomes ineffective till PAN remains inoperative. As per NSDL / CDSL guidelines, Demat account opening & transactions processing will be restricted for inoperative PAN. As per extant RBI guidelines investment in RBI Bonds is not allowed for inoperative PAN. As per extant RBI guidelines investment in Sovereign Gold Bonds is not allowed for inoperative PAN. As per SEBI guidelines, ISA account opening and transactions processing will be restricted for inoperative PAN.

Please note; linking of Aadhaar with PAN does not apply to an individual who does not possess an Aadhaar number / Enrollment ID and is:- residing in the States of Assam, Jammu and Kashmir and Meghalaya. a Non-Resident as per Income Tax Act 1961. of the age of eighty years or more at any time during the previous year. not a citizen of India. It is as per notification 37/2017 dated 11-May-2017 issued by CBDT.

What is PAN – Aadhaar Linking (Seeding)?

As per Section 139 AA of the Income Tax Act 1961, every individual including Non-Resident Indians (holding PAN & Aadhaar number) is required to link their PAN with Aadhaar by 30/06/2023.

What happens if PAN is not linked to Aadhaar by 30/06/2023?

a. Not linking PAN with Aadhaar would lead to the PAN being mapped as "Inoperative PAN" at NSDL w.e.f 1st July 2023. Customer cannot give Form 60
b. Impacts customer with higher TDS / TCS rates
c. No waiver marking for Form 15 G/H if PAN is Inoperative

Can New customers open Account with the Bank if PAN is inoperative (not linked to Aadhaar)?

New customers can open account if the PAN status is inoperative. In case of Authorised signatory’s’ PAN being inoperative, the same shall have no impact in Authorised signatory capacity .

Will Inoperative PAN impact Cash withdrawal by the customers?

Customer with Inoperative PAN shall be liable to higher TDS rate on cash withdrawal transactions.

What happens if individual Customer does not have PAN?

The customer may be allowed to open Account basis Form 60 as per the extant guidelines. Subsequently after obtaining PAN, customer should map same with Aadhaar (as available)

What about existing customers whose account has been opened with Form 60?

PAN – Aadhaar linkage would not be applicable to existing customers whose accounts have been opened based on Form 60. The same would be continued till they obtain PAN and consequently link it with Aadhaar.

What about the status of NRI / PIO customers?

PAN Aadhaar linkage would be applicable for NRI / PIO customer who hold both PAN and Aadhaar. The NRI / PIO customer should update his / her residential status correctly with Income tax Department of India. If NRI / PIO customer does not hold an Aadhaar yet the PAN is made Inoperative by the Income tax Department, then bank will be construed to consider the NRI / PIO PAN inoperative on Bank record. The NRI / PIO customer will have to consult his /her Tax consultant in India to update his / her residential status on Income Tax Portal and make his / her PAN Operative.

When is the PAN- Aadhaar linking not Compulsory?

Linking of PAN with Aadhaar is applicable to non-individuals. For cases which are flagged as exempt / NA by NSDL output are to be read as Operative Pan.

What about DTAA customers?

Inoperative PAN is does not impact the TDS rate for DTAA customers when they have given the declaration in a specified format which contains mobile number, address, email .

What is the impact of Inoperative PAN on Mutual Funds?

a. No new ISA registrations can be done for customers with Inoperative PAN

What about TCS & TDS deductions?

TCS and TDS to be collected at No Pan rate.

How will Sikkim & NE Customers be affected by Inoperative PAN?

Sikkim & NE Customers with Inoperative PAN will be charged at higher rates i.e. @20%. It need to be noted that the exemption from TDS will be available to NE Sates and Sikkim customers even when the PAN is inoperative.