Is linking of PAN with Aadhar is mandatory for everyone? And some practical issues around it!
Till now many of us must have received a message informing us to link our PAN with Aadhar on or before 30/06/2023 (Notification No. 15/2023 dated March 28, 2023) or else our PAN will be inoperative. These messages seems to be partially correct as PAN will be inoperative for all those individuals ‘who are required’ to obtain Aadhar Card and link it to their PAN.
So, now the following questions come to our mind:
A. Who is required to obtain Aadhar Card?
B. Is linking of PAN with Aadhar is mandatory for everyone?
C. If no, then who all are exempt from linking PAN with Aadhar?
D. If we have not linked are PAN with Aadhar then what will be the consequences?
E. What will be the Practical difficulties faced by the department relating to that?
So, let us first understand this in detail and make everyone aware about it.
As per Section 139AA of Income Tax Act, 1961, Quoting of Aadhar number is mandatory for everyone who is eligible to obtain an Aadhar number in their return of income and at various other places.
Page Contents
- A. Who all are required to obtain an Aadhar Card?
- B. Is linking of PAN with Aadhar Card is mandatory for everyone?
- C. What are the exceptions? Who all are exempt from linking of PAN with Aadhar Card?
- D. What are the consequences, if PAN is not linked with Aadhar on or before 30/06/2023?
- E. Practical Issues in linking of PAN with Aadhar on or before 30/06/2023
A. Who all are required to obtain an Aadhar Card?
As per Section 3 of Aadhar Act, 2016, every resident shall be entitled to obtain an Aadhaar number by submit-ting his demographic information and biometric information by undergoing the process of enrolment.
For the purpose of above, “resident” means an individual who has resided in India for 182 days or more in the 12 months immediately preceding the date of application for enrolment.
So, as per this an individual who is residing in India for 182 days or more in preceding 12 months then he is mandatorily required to obtain an Aadhar number.
B. Is linking of PAN with Aadhar Card is mandatory for everyone?
Yes. Linking of PAN with Aadhar is mandatory for everyone but there are certain types of individuals who are not required to link PAN with Aadhar Card.
C. What are the exceptions? Who all are exempt from linking of PAN with Aadhar Card?
As per Notification No. 37/2017 dated 11th May, 2017, PAN Aadhar linkage requirement does not apply to any individual who is:
i. Residing in the States of Assam, Jammu and Kashmir, and Meghalaya;
ii. A non-resident as per the Income-tax Act, 1961;
iii. of the age of eighty years or more at any time during the previous year; or
iv. Person who is not a citizen of India.
D. What are the consequences, if PAN is not linked with Aadhar on or before 30/06/2023?
1. From 1st July, 2023, the unlinked PAN shall become inoperative. Then you will not be able to use your PAN wherever it is mandatory. This includes the opening of bank accounts, demat accounts etc.
2. Filing of ITR’s won’t be possible and If you won’t be able to file the ITR then you will not been able to take Loan or Visa for travelling purpose.
3. Your pending returns will not be processed which means that your pending refund will not be issued.
4. Tax will be deducted at a higher rate as your PAN is no longer operative.
The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs. 1,000.
E. Practical Issues in linking of PAN with Aadhar on or before 30/06/2023
With regards to the exceptions mentioned above, there will be number of practical difficulties that will be faced by individuals as well as department. Some of the practical issues have been discussed below with probable solutions.
1. Although the linking of PAN with Aadhar is not mandatory for individuals who are non-residents under Income Tax Act, 1961, how does the department know that individuals whose PAN are not linked with Aadhar are non-residents.
By verifying the details from the ITR filed? Correct? Yes.
But what about non-residents who haven’t filed their ITR since they are not required to file it under the Income Tax Act, 1961? How will the department find about this? Currently, the department has no system in place to confirm whether a person is resident or non-resident. Right now, they only have the one way to check, which is through the ITR that has been filed. I feel they should develop some system and link it with the passport so that whenever an individual travels outside India, it will be reflected someplace, such as in AIS or somewhere else, allowing them to verify an individual’s residential status.
2. Also, linking of PAN with Aadhar is not mandatory for individual who is not a citizen of India. Again, the same question comes, how the department will know whether an individual whose PAN is not linked to Aadhar is not a citizen of India? The department currently has no mechanism to verify the citizenship of any individual.
So, if you have Aadhar, even if it is not mandatory, it is always better to link it with your PAN. However, if you don’t have Aadhar, keep your documents ready and by any chance if your PAN is inoperative, you can submit the documents to the officer and explain them why you are not linking your PAN with Aadhar.
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In case you have any questions, you can write to me at [email protected]. I’ll do my best to reply to your queries as quickly as possible.
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if i have not linked pan card with aadhar and now i make a new pan card and linked with aadhar then any i have to charged for any panelty
Hi…Are the person who are not liable to file Income Tax return also required to link their adhaar number with PAN card
My relative has been NRI for the last 3 years. He is holding a PAN and Aadhar card and he never registered on the Income tax site so his status of non – resident is not updated over there. There is only a joint account he is having with his mother in India. So my question is whether he is required to Link his aadhar with Pan ??
What are the consequences he will face if he is not linked the same.
hi…
it says that every individual who has been allotted a permanent account number (PAN) as on the 1st day of July, 2017, and who is eligible to obtain an Aadhaar number are required to link PAN and Adhaar…
Does it mean that if we have been allotted PAN before July 2017 are not required to link PAN and Adhaar? or should I link it? please reply. TIA
It is mandatory for all individuals who were eligible to obtain an Aadhaar number and had been allotted a PAN before July 1, 2017, to link their PAN and Aadhaar.
Dear sir
super senior citizen has pan card and adhaar card but it is not linked since it is not compulsory but hes having bank account and interest from fixed deposits within the taxable limit , then will it be an issue for 15G issuance ans will higher rate of tds be deducted
Dear sir, I actually belong from bihar and have the address of bihar in adhar card but from past 2 years I am working in Assam and living there so do i nRahileed to link my pan with aadhar or I am exempted???
if they not linked, is there any problem to their BANK account.
If PAN is not linked with Aadhar by 30/06/2023 (extended by way of notification), your PAN will become inoperative. If your PAN becomes inoperative, it is as if you do not have PAN, and you may have to face the repercussions of not having PAN.
Dir sir, my mother didn’t have mobile how to take other for linking pan car and aadhar card. one more question sir we all ready given aadhar and pan card to bank they have linked what government not check linked or not..sir please help me
Dear Sir,
You may find out whether your mother’s PAN is linked to Aadhar by visiting the income tax portal. If it is not linked, you can even input your cell number, as the mobile number is solely used for verification.
If we, people of Meghalaya link pan and aadhaar, will we have to start paying taxes like other states?
Linking of PAN with Aadhar is not mandatory if you are residing in the state of Meghalaya.
Is it mandatory of linking pan anad aadhar for non-tax payers ??.even their total income falls under basic exemptiom limit. What are the consequences of not linking pan and aadhar for this kind of people
Dear Sir,
Linking of PAN with Aadhar is not related to the filing of the Income Tax Return. Even if you are not required to file the return, you still have to link your PAN with Aadhar.
sir, if the person is former or wage labour why they have to pay this much (1000) because for 1000 they have to work for 2 day’s and their income will not come to income tax payment, in this case why that have to link with paying this much,
why govt collecting each 1000, for simple work and what they are doing with that money.
if they not linked, is there any problem to their BANK account.
thank you
Dear Sir,
I completely agree with you that Rs.1000 late fees are too much for general public but you will have to understand governments perspective also. I’m trying to justify governments action but I am just trying to explain this from their point of view.
The government has started PAN Aadhar linking process approximately 5 years back. But till date many people have not linked their PAN with Aadhar. By linking they are trying to smoothen the process for individual as PAN and Aadhar will become interchangeable. Also, one of the important reason for this process is they want to track down the fake identities which has been increased in recent past years and misusing the benefits provided by the government. So, this process is much needed with reduced late fees.
DEAR SIR,
Payment for aadhar and pan link has been made but unable to link due to mismatch in DOB ,what will be the consequences if the mismatch is not corrected within 31/03/2023?Will the pan become inactive even after the payment. Iam worried about losing that money. I had made request for update in aadhar. But it has been rejected. What to do if the update is not made within 31/03/2023.
Kindly please reply
Dear Sir,
Now, the due date to link your PAN with Aadhar is extended to 30/06/2023. So, you will still have time until 30/06/2023. However, you will have to submit the request for challan correction for change in the assessment year to your jurisdictional AO if your PAN is not linked with Aadhar before 31/03/2023.
when apply for link adhhar and pan card. payment select net banking 2 options showing
corporate or retails payment. I am individual pay 1000 ra from which link
If you have are paying from your own account then retail will be the correct option. However, please check with you bank before paying the amount.
As I am a government job holder every year we file ITR on form 16,do I need to link adhar with pan?
Dear Sir,
Linking of PAN with Aadhar is mandatory for everyone unless you fall under the exempt category.
My father is 81 yrs old as in 2023. Is it mandatory for him to link aadhaar with pan? He submit’s 15H form for TDS dedution in bank ( yearly basis )for a specific amount in the bank under Senior citizen saving scheme. Will he get the exemption under 15H if his pan becomes inoperative.
Dear Sir,
Linking of PAN with Aadhar is not mandatory for a person having age of 80 years or more. So, in your case, your fathers age is more than 80 years and therefore, he is not required to link his PAN with Aadhar. So, his PAN will not become inoperative.
Dear Sir,
I am from ladakh which has become UT after bifurcation of Jammu and Kashmir. Do we people from ladakh have to link pan with aadhar or are we exempted like Jammu and Kashmir?
Dear Sir,
As per Notification No. 37/2017 dated 11/05/2017, an individual residing in the state of Jammu and Kashmir are exempt from linking PAN with Aadhar. Ladakh was established as a seperate union territory of India only on 31st October, 2019. Prior to that, it was part of the Jammu and Kashmir state. So, at the time of issuing notification Ladhakh was part of Jammu and Kashmir State and therefore as per me you are not required to link your PAN with Aadhar.
for linking pan to adhar my amount of 1000 is debited but it’s not linked , it displayed that wrong details from bank
What can I do can anyone pls help out
Kindly check with your Bank whether amount credited again after payment. If not, then please contact Income Tax Helpdesk.
Sir, Let us know why we need to pay Rs. 1000/- for every individual its a huge amount and wherein for no ITR filling people , no loan availing people, house wifes and low earning people etc they don’t require this type of process and it is useless to pay that much amount. Atleast Govt should have concern about them,
I can understand your concern and I totally agree with you that Rs.1000 late fees are too much for general public but you will have to understand governments perspective also. Don’t think that I’m trying to justifying governments action. I am just trying to explain this from their point of view.
The government has started PAN Aadhar linking process approximately 5 years back. But till date many people have not linked their PAN with Aadhar. By linking they are trying to smoothen the process for individual as PAN and Aadhar will become interchangeable. Also, one of the important reason for this process is they want to track down the fake identities which has been increased in recent past years and misusing the benefits provided by the government. So, this process is much needed.
I am trying to link aadhar card with PAN card for my Mother, however there is a slight spelling mistake in PAN card. Can i still link it with AADHAR ?
Dear Sir,
If there is mismatch in the data in PAN and Aadhar then first you will have to align details the details. Once the details in PAN and Aadhar matches then only you will be able to link your PAN with Aadhar.
Hi,
On my Aadhaar card my name spelling is mismatched with pan and dob is different can i link pan card with Aadhaar
If there is mismatch in the data in PAN and Aadhar then first you will have to align details the details. Once the details in PAN and Aadhar matches then only you will be able to link your PAN with Aadhar.
Sir,
What about HUF. Does PAN need to be linked to Aadhar of Karta.
Shall be obliged to receive a reply.
Regards
Shyam Jaisingh
Dear Sir,
In case of HUF, Karta’s PAN is required to be linked with Aadhar unless Karta falls under exempt category.
My sister and brother-in-law bought a house and car on loan and went through loss due to pandemic and as they were unable to pay the loans they lost both.they have not been able to file their Itr ever since the pandemic.will their pan cards be cancelled?their income tax returns were always paid in time before the pandemic
PAN Aadhar linking is not depend on the filing of ITR. You will have to link your PAN with Aadhar unless you fall under the exempt category as notified by the government.
respected sir
my parents are 90 years of age they are having both aadhar card and pan card but not paying income tax as their income is below limit
do they have to link aadhar with pan or they are exempted from linking it as they are above 80 years of age as on today
please do guide
Dear Sir,
Linking of PAN with Aadhar is not mandatory for individuals having age of more than 80 years. So, you are not required to link your parent’s PAN with Aadhar as their age is more than 80 years.
thank you sir for your prompt reply and guiding us what to do
I am a resident of Assam, and i got my aadhar card number on Nov-2022. But now i want to link my aadhar number with pan card. So can I have to pay Rs.1000 as a penalty charges to link up pan with aadhar. Because residents of North Eastern are exempted ( not a mandatory ) to link up pan aadhar number.
Since you are resident of Assam, you are not required to link your PAN with Aadhar. But if you want to link it then right now the system is not capable of fetching the details. So you will have to pay late fees for linking your PAN with Aadhar.
Only those individual having PAN on or before July, 2017 need to link adhhar with PAN issued after July, 2017 is not required as for PAN application Adhaar was/is mandatory which is directly linked by NSDL.
Non resident who had obtained Aadhar in March 2023 wants to link it with PAN, liable to pay penalty of Rs 1000?
Since he/she is NRI and has only recently obtained an Aadhar Card, late fees should not be charged. But I doubt system is capable of fetching the details and therefore, if you want to link PAN with Aadhar, you will have to pay the fees.
My sister presently doesn’t have any active bank account. However she wants to retain her PAN Card. How would she (or I) pay the fees of ₹1000/- for linking her PAN and Aadhar?
For payment of Aadhar Linking fees you can refer to Aadhar User Mannual by Income Tax Deparment.
Link for the same: https://www.incometax.gov.in/iec/foportal/help/how-to-link-aadhaar#:~:text=on%2013.01.2023)-,Step%3A1(a)%20Visit%20e%2DFiling%20Portal%20Home,Pay%20Through%20e%2DPay%20Tax.&text=Step%3A1(g)%20Provide,details%20and%20click%20on%20Proceed.
Is it mandatory to link pan with Aadhar for people who dont file ITR?
Yes
The department is just not bothered. I have talked to various helplines. I have submitted grievance to record status of NRI but to no avail. The helpline staff just keeps parroting that NRIs are not required to link but when I asked “how would you know the status?” they have no reply. I even asked them to send me a mail confirming that PAN shall not be deactivated which the helpline staff promised to email but did not send any.
Yes. They don’t have any system in place to track this. Also, the deactivation process will be automated. So, even if you receive the email from the department confirming that PAN Aadhar linkage is not required for NRIs, it will be useless.
I tried several times to link my HUF PAN with my AAdhar card but it rejects and ask for Individual PAN . Please enlighten if HUF too is required to be linked to Aadhar.If ,how to link it.
Dear Sir,
Only Individual’s PAN is required to be linked with Aadhar as only individuals are elibile to obtain the Aadhar number. However, in case of HUF, Karta’s PAN is required to be linked with Aadhar.
Thank you for your quick responce. As suggested by you I had tried to link Aadhar of karta of HUF but it failed. Please enlighten in such case HUF will be treated as defaulter or not.
Dear Sir,
PAN Aadhar linkage is mandatory for individuals. So, if your have not linked your PAN with Aadhar then your PAN will be deactivated. In case of HUF, if Karta’s PAN is not linked with Aadhar then Karta’s PAN will be deactivated. HUF’s PAN will not be deactivated, it will remain active only.
sir,
can I apply second time for PAN after de-active from 01.04.2023
kindly advice
Dear Sir,
If your PAN deactivates after 01/04/2023 due to non linking of your PAN with Aadhar, you can re-activate your PAN by following specified procedure after payment of fees.