The Income Tax Department has issued a final call to all Permanent Account Number (PAN) holders across India. Today, December 31, 2024, is the conclusive deadline to link your PAN card with your Aadhaar card. Taxpayers who miss this date will see their PAN become inoperative and must pay a late fee before proceeding with the linkage.
Urgent Deadline and Late Fee Details
According to the latest directive from the tax authorities, the window for linking PAN and Aadhaar without a penalty closes on December 31, 2024. Individuals who have not yet completed this mandatory process must act immediately. A late fee of Rs 1,000 is now applicable for those linking after the deadline. However, there is an exemption for a specific group: individuals who obtained their PAN after October 1, 2024, using an Aadhaar enrolment ID have an extended deadline until December 31, 2025, to link for free.
Step-by-Step Guide to Link PAN with Aadhaar
If you are among those who still need to link the two documents, follow this straightforward process on the official Income Tax e-filing portal.
- Visit the official Income Tax e-filing website at www.incometax.gov.in/iec/foportal/.
- Navigate to the 'Quick Links' section and select the 'Link Aadhaar' option.
- Enter your PAN and Aadhaar numbers accurately and click on 'Validate'.
- If already linked, a notification will confirm the status. If not, and you have paid the challan, the system will verify the payment.
- Click on 'Link Aadhaar' after entering all required details.
- Enter the 6-digit OTP sent to your Aadhaar-linked mobile number.
- Submit the request to finalize the linking process.
Please note that the linking process can take up to 4 to 5 working days to reflect in the official records.
Serious Consequences of an Inoperative PAN
Failing to link your PAN with Aadhaar by the stipulated date will render your PAN inoperative. This status triggers several significant financial and procedural disadvantages for the taxpayer.
The major repercussions include:
- No income tax refunds will be issued to you.
- You will not receive any interest on pending refunds for the period your PAN remains inoperative.
- Tax will be deducted at source (TDS) at a much higher rate, as per Section 206AA of the Income Tax Act.
- Similarly, tax collected at source (TCS) will also be levied at a higher rate under Section 206CC.
This move by the Income Tax Department is part of a broader effort to streamline financial records and curb tax evasion by creating a unified, verified identity for all financial transactions. Taxpayers are strongly advised to complete the linking process before the end of the day to avoid any disruption in their financial activities and compliance status.
