Deadline For Linking PAN-AADHAR Extended To THIS Date: Check New Fees & Penalty Details

Even if you do not link the PAN with your Aadhaar number by the end of the day today, your PAN will stay active till March 31, 2023, and would not become inactive as previously notified/indicated by the government.

The date to keep your PAN active without connecting it to the Aadhaar has now been extended from March 31, 2022, to March 31, 2023.

Fees For Linking Aadhar-Pan Card

However, linking your PAN to Aadhaar will cost you money from April 1, 2022. The Central Board of Direct Taxes (CBDT) notified this via a notification dated March 29, 2022, and a press release on March 30, 2022.

"To alleviate the difficulties to the taxpayers, as per Notification No.17/2022 dated 29th March 2022, a time window has been given to the taxpayers up to the 31st of March 2023 to integrate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing implications," according to the press release. As a result, taxpayers would be required to pay a price of Rs 500 for the first three months beginning April 1, 2022, and a fee of Rs 1000 afterward, when informing their Aadhaar.

However, till March 31, 2023, assessees who have not linked their Aadhaar will be able to use their PAN for Act-related activities like filing income tax returns, processing refunds, and so on."

Thus, linking your PAN to Aadhaar from April 1, 2022, will cost you Rs 500 if done by June 30, 2022. If the PAN-Aadhaar link is completed on or after July 1, 2022, a charge of Rs 1,000 should be paid. The imposition of costs of up to Rs 1000 for connecting PAN-Aadhaar beyond March 31, 2022, has previously been announced. The structure of these fees has now been set.

PAN Card To Become Inactive From April 2023

Furthermore, if your PAN is not linked to Aadhaar by March 31, 2023, the PAN will become inactive the next year, beginning April 1, 2023. If your PAN becomes inactive, you will be unable to submit an income tax return, open a bank account, or invest in mutual funds, among other things.

According to income tax legislation, any individual with a PAN as of July 1, 2017, who is entitled to receive an Aadhaar number is required to notify the prescribed authority of his/her Aadhaar number on or before the prescribed date (March 31, 2022, as per earlier government diktat). If he or she fails to do so, his or her PAN will become inoperative, and all processes using PAN would be suspended.

According to the previous notification, the PAN might have been operative after March 31, 2022, following notification of Aadhaar to the prescribed authority and payment of a prescribed fee (up to Rs 1000).

The income tax department may additionally charge a penalty of up to Rs 10,000 under section 272B for not possessing an active PAN. However, this would now be charged if the PAN becomes inactive after March 31, 2023 as a result of not being linked to Aadhaar.