The Income Tax Department has recently deactivated PAN cards for individuals who failed to link them with their Aadhaar cards by the June 30 deadline. However, there is still an opportunity to reactivate your PAN card by following a simple process and paying a penalty of Rs 1,000 as notified by the Central Board of Direct Tax.
Pan Card and Aadhar Card link
Table of Contents
- Check your PAN Card Activation Status
- Steps to Activate your PAN Card
- Consequences of an Inoperative PAN
- Importance of PAN-Aadhaar Linking
Check your PAN Card Activation Status
To determine whether your PAN card is activated or not, log in to the official e-filing portal at https://www.incometax.gov.in/iec/foportal/. From the Quick Link option, select “Verify Your PAN Details” and enter your PAN, Full Name, Date of Birth, and Status. Complete the Captcha verification and submit your details to verify the status of your PAN.
Steps to Activate your PAN Card
- Visit the official website https://www.incometax.gov.in/iec/foportal/.
- Proceed with the Aadhaar-PAN linking request and fill in the required details.
- Click on “CHALLAN NO./ITNS 280” for Aadhaar-PAN linking request submission.
- Select the mode of payment and enter the PAN along with the complete address for the chosen Assessment Year (AY).
- Enter the Captcha code and submit the request.
- The activation process typically takes one month.
Consequences of an Inoperative PAN
It is crucial to understand the consequences of having an inoperative PAN. Quoting the PAN is mandatory for certain transactions such as opening a DeMat account, investing in mutual funds, or making fixed deposits. Inoperative PANs may result in higher tax deductions and collections (TDS/TCS), and refunds cannot be issued against them.
Importance of PAN-Aadhaar Linking
The government’s main objective behind making PAN-Aadhaar linking mandatory is to ensure smooth tax filing and payments. By linking PAN with Aadhaar, the government aims to combat tax evasion and ensure accurate tax payment by taxpayers. This initiative also helps in reducing fraud, preventing scams involving multiple bank accounts, filing of multiple income tax returns, and identity theft using fake identities.
Remember, it is crucial to act promptly and follow the necessary steps to activate your PAN card and link it with Aadhaar. Stay compliant and ensure a seamless experience in your financial transactions.