Introduction: The Government of India, through the Ministry of Finance’s Department of Revenue, has provided essential updates on PAN-Aadhaar linking. Addressing specific queries from Rajya Sabha member Smt. Phulo Devi Netam, the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, has shed light on PAN-Aadhaar linkage statistics, inactivation details, consequences, and the financial implications of the process.
Detailed Analysis:
1. PAN-Aadhaar Linking Statistics (State-wise): As of June 30, 2023, a staggering 54,67,74,649 PANs have been linked with Aadhaar. While a state-wise breakdown till that date is unavailable, Table-A provides comprehensive data as of November 30, 2023. Notably, Uttar Pradesh, Maharashtra, and West Bengal lead in PAN-Aadhaar linking with 87,10,2419, 61,94,25,91, and 48,95,76,47 linkages, respectively.
2. PAN Inactivation and Consequences: Contrary to deactivation, PANs are made ‘inoperative’ if not linked with Aadhaar after June 30, 2023. Circular No. 03 of 2023 outlines the consequences of PAN inoperativeness, including the withholding of tax refunds, non-payment of interest on refunds, higher TDS rates, and increased TCS rates for non-compliant individuals. The stringent measures aim to encourage timely PAN-Aadhaar linkage.
3. Procedure for Reactivation (d): Given the answer to (b) indicating no PAN deactivation, the question about the procedure for reactivation does not arise. The emphasis remains on ensuring PAN-Aadhaar linkage without resorting to deactivation.
4. Rs. 1,000 Fee for Linking (e): A noteworthy revelation is that 2.125 crore individuals paid Rs. 1,000 each for linking Aadhaar with PAN from July 1, 2022, to November 30, 2023. The total amount collected stands at Rs. 2,125 crore, signaling both compliance and financial implications for individuals.
Conclusion: The provided insights offer a comprehensive understanding of the PAN-Aadhaar linking scenario in India. The significant number of linkages underscores widespread compliance, while the absence of PAN deactivation emphasizes the effectiveness of the government’s strategy. The stringent consequences outlined in Circular No. 03 of 2023 serve as deterrents against non-compliance, aligning with the government’s commitment to promoting a transparent and robust financial ecosystem. As individuals continue to link their PANs with Aadhaar, the financial implications highlight the dual purpose of compliance and revenue generation. Stay informed about further developments in this critical aspect of financial governance.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
UNSTARRED QUESTION NO.1017
ANSWERED ON – 12/12/2023
‘PAN CARDS LINKED WITH AADHAAR’
- SMT. PHULO DEVI NETAM:
Will the Minister of FINANCE be pleased to state:
(a) the details of the number of people whose PAN cards have been linked with their Aadhaar number till June 30th, 2023, State-wise;
(b) the details of the numbers of PAN cards which have been deactivated due to non linking with Aadhaar after 30th June, 2023, State-wise;
(c) the details related to the consequences of deactivation of PAN card due to non-linking with Aadhaar card;
(d) the details related to the procedure for reactivation of PAN card after its deactivation; and
(e) the number of people who have paid ₹ 1,000/- for linking the two documents and the total amount collected so far?”
ANSWER
(MINISTER OF STATE IN THE MINISTRY OF FINANCE)
(SHRI PANKAJ CHAUDHARY)
(a) The details of number of PANs linked with their respective Aadhaar as on 30th June, 2023 is 54,67,74,649. State-wise breakup of data for a back date is not available. However, state-wise information as on 30.11.2023 is provided in Table- A
(b) No PAN is deactivated for the reason of non-linking with Aadhaar. The PAN is made only ‘inoperative’ if it is not linked with Aadhaar.
(c) If the PAN is not linked with Aadhaar, the consequences of the PAN made inoperative are as per the Circular No. 03 of 2023, which are as follows:
(i) refund of any amount of tax or part thereof, due under the provisions of the Income-tax Act, 1961 shall not be made to him;
(ii) interest shall not be payable to him on such refund for the period, beginning with the date specified under sub-rule (4) of rule 114AAA of Income-tax Rules, 1962 and ending with the date on which it becomes operative;
(iii) where tax is deductible under Chapter XVII-B in case of such person, such tax shall be deducted at higher rate, in accordance with the provisions of section 206AA of Income-tax Act, 1961
(iv) where tax is collectible at source under Chapter XVII-BB in case of such person, such tax shall be collected at higher rate, in accordance with the provisions of section 206CC of Income-tax Act, 1961.
(d) In view of answer to (b), the question does not arise.
(e) Total number of people who have paid Rs 1000/- for linking Aadhaar with PAN during the period from 1st July, 2022 to 30th November, 2023 is 2.125 crore. Total amount collected from these people is Rs 2,125 crore.
******
TABLE-A
| S.No. | RESIDENTIAL ADDRESS STATE | PAN COUNT |
| 1 | ANDAMAN AND NICOBAR ISLANDS |
235107 |
| 2 | ANDHRA PRADESH | 24726158 |
| 3 | ARUNACHAL PRADESH | 715204 |
| 4 | ASSAM | 12813323 |
| 5 | BIHAR | 42323312 |
| 6 | CHANDIGARH | 745605 |
| 7 | DADRA AND NAGAR HAVELI | 210977 |
| 8 | DAMAN AND DIU | 162353 |
| 9 | DELHI | 13837680 |
| 10 | GOA | 1003876 |
| 11 | GUJARAT | 27452095 |
| 12 | HARYANA | 17487275 |
| 13 | HIMACHAL PRADESH | 4015286 |
| 14 | JAMMU AND KASHMIR | 4669709 |
| 15 | KARNATAKA | 37258217 |
| 16 | KERALA | 17831049 |
| 17 | LAKHSWADEEP | 22300 |
| 18 | MADHYA PRADESH | 28599138 |
| 19 | MAHARASHTRA | 61942591 |
| 20 | MANIPUR | 1209847 |
| 21 | MEGHALAYA | 463788 |
| 22 | MIZORAM | 305405 |
| 23 | NAGALAND | 605556 |
| 24 | ORISSA | 14440675 |
| 25 | PONDICHERRY | 568358 |
| 26 | PUNJAB | 18172272 |
| 27 | RAJASTHAN | 30803683 |
| 28 | SIKKIM | 303020 |
| 29 | TAMILNADU | 36263939 |
| 30 | TRIPURA | 1565478 |
| 31 | UTTAR PRADESH | 87102419 |
| 32 | WEST BENGAL | 48957647 |
| 33 | CHHATISHGARH | 10151087 |
| 34 | UTTARAKHAND | 6017054 |
| 35 | JHARKHAND | 12835481 |
| 36 | TELANGANA | 15635137 |
| 37 | FOREIGN | 153328 |
