PAN-Aadhaar Linking Deadline: The last date to link your PAN and Aadhaar is fast approaching. If an individual fails to link their PAN with Aadhaar by December 31st, even after paying the prescribed late fee, their PAN card will become inactive. According to income tax rules, an inactive PAN cannot be used for several essential financial and tax-related services.

Late Fee is Mandatory

Before linking PAN and Aadhaar, it is mandatory to pay a penalty of ₹1,000 on the income tax e-filing portal. However, those who obtained a PAN based on their Aadhaar enrollment ID after October 1, 2024, have been given a reprieve. They can link their PAN and Aadhaar without any fee until December 31, 2025. This information has been provided by the tax platform ClearTax.

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What problems will arise if PAN becomes inactive?

If your PAN becomes inactive, filing income tax returns, banking transactions, investments, stock market transactions, and other financial transactions may be affected. The purpose of PAN-Aadhaar linking is to strengthen identity verification and prevent the creation of multiple PANs. Therefore, all taxpayers need to link both.

How to link PAN and Aadhaar

To link your PAN and Aadhaar, first log in to the income tax e-filing portal. Go to the ‘My Profile’ section and select the ‘Link Aadhaar’ option. Then enter your PAN and Aadhaar numbers and pay the prescribed penalty through e-Pay Tax. Once the payment is complete, the linking process is finished.

How to check the linking status

Taxpayers can also check the PAN-Aadhaar linking status on the income tax e-filing portal. The status will be displayed on the screen after entering your PAN and Aadhaar numbers. If it is not linked, a notification will also appear on the portal.

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What to do if there are discrepancies in the information?

If there are discrepancies in the name, date of birth, or other details between your PAN and Aadhaar, it is necessary to get them corrected first. Changes to Aadhaar can be made through the UIDAI portal, and corrections to PAN can be done through the Protean (NSDL) or UTIITSL websites. If needed, corrections can also be made through biometric verification at a nearby authorized PAN service center.