What happens if you do not link PAN with Aadhaar by 31st December?

What happens to PAN which is not linked to Aadhaar after 30 September 2019, and how can we get them linked?

What happens if you do not link PAN with Aadhaar by 31 December?

From 1 October 2019 any PAN, which is not linked to Aadhaar on or before 31st December 2019, will become inoperative. This is a departure from the Finance Act 2017 rule that said that PAN will become invalid if it is not linked with Aadhaar within a specified date. While the specified date is clearly 31 December 2019, the fate of unlinked PANs has been changed from becoming invalid to become inoperative. While invalid means that the PAN will be deemed to be non-existent, an inoperative PAN would be useless for transactional purposes. Notably, the government has not yet defined the meaning of inoperative. The change in consequences was made to protect previous transactions that were made using the, soon to be inoperative, PAN.

This PAN and Aadhaar linking rule were changed in this year’s budget and the 31 December 2019 deadline was declared through a CBDT notification on 31 March 2019.  So far there is no clarification from the government about what will happen when the PAN becomes inoperative. It can be assumed that a person will probably not be able to carry out transactions which require the quoting of the PAN. It remains to be seen if the person will be able to reactivate the PAN by linking it with Aadhaar on a later date. In other words, the manner in which an inoperative PAN can become operative has not been explained yet. Whatever pans out in the days ahead, one can link Aadhaar card to PAN card online as well and time left to do so certainly seems limited.

Related: No Address Proof, No Problem for Address Change in Aadhaar 

How can PAN and Aadhaar linking be done?

If you are a registered user of the Income-tax e-filing website, you can link Aadhaar card to PAN card online on the website. Even unregistered users can link it, however, the process of doing so is different.

You can ensure PAN and Aadhaar linking by sending an SMS to either 567678 or 56161 in the format UIDPAN<SPACE><12 digit Aadhaar><SPACE><10 digit PAN>

PAN and Aadhaar linking can also be done manually by filling Annexure-I form and visit an NSDL or UTIITSL service centre.

Related: NBFCs can use Aadhaar-based bank KYC to give loans

How can someone link Aadhaar card to PAN card online?

If you notice that your PAN and Aadhaar are not already linked on the website, follow these steps:

1. Go to profile settings and click on Link Aadhaar.

2. Fill your personal details as per your PAN records along with your Aadhaar number.

3. Submit the same.

For unregistered users, a link to link Aadhaar card to PAN card online is provided in the e-filing website as well as the income tax website. You have to click on the link and provide your PAN, Aadhaar number, Name as per Aadhaar and click on submit.

How will this linking be beneficial?

It will help the government to eliminate fake PANs that have been registered by people to conceal income and evade taxes. It will also be easier for the income tax department to track tax evasions and trace out unreported transactions. Besides, illegal activities and the financing of illegal activities can be curbed once this linking is completed. Here's all you need to know about linking your Aadhaar and PAN card.

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