PAN-Aadhaar linking date has expired: Here is what you can do if PAN becomes inactive

PAN-Aadhaar linking date has expired: Here is what you can do if PAN becomes inactive

Permanent Account Numbers (PANs) and Aadhaar numbers could no longer be linked after June 30, 2023. Although it has done so numerous times in the past, the administration did not extend this deadline this time. If someone still hasn't connected their PAN to their Aadhaar, their PAN will stop working as of today (July 1, 2023).

You won't be able to use certain services where you are required to quote the PAN if it becomes inoperative. Additionally, you can only file an income tax return (ITR) after linking your PAN and Aadhaar if you haven't already done so.

What are the consequences of PAN becoming inactive?

If an individual's PAN becomes inactive, it will mean that-

1. He does not have a valid PAN.

2. He will not be able to quote the PAN wherever it is mandatory. Quoting of PAN is mandatory for certain transactions under the income tax rules.

 3.He will not be able to invest in bank fixed deposits and mutual funds, and to open a demat account.

4. TDS and TCS be deducted or collected at higher rate

5.No refund will be made against such PANs

6.Interest will not be payable on such refund for the period during which the PAN remains inoperative.

How to make PAN operative again

In a notification dated March 28, 2023, the Central Board of Direct Taxes (CBDT) explained what a person might do to make their PAN operational once more.

"The PAN can be made operational again in 30 days," it stated. This is done by notifying the appropriate authority and paying a cost of Rs. 1,000.

This indicates that in order to reinstate the PAN, you must pay a fine of Rs 1,000. However, the PAN won't be operational  for 30 days after the date of connection.

How to pay penalty to link PAN with Aadhaar

An individual must sign in to his account on the income tax e-filing website in order to pay a fine for associating their PAN with their Aadhaar. Once logged in, select the "Link PAN with Aadhaar" option under the profile area. You will be required to pay the penalty amount through e-Pay Tax once the necessary information is entry.

Here is the website link click here 

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