Jul 06, 2023 04:42 PM IST
The inoperative PAN can, however, be made operational again in 30 days after informing the relevant authorities and paying a cost of Rs.1,000.
The deadline for linking PAN and Aadhaar cards was June 30, and starting from July 1, any PAN card that remains unlinked will become inactive, as informed by the Income Tax department. If your PAN has become inactive, you can make it active again in 30 days after informing the relevant authorities and paying a cost of Rs.1,000. To do this, you have to visit the National Securities Depository Limited (NSDL) website and pay the required amount using Challan No. ITNS 280 with Major Head 0021 (Income Tax Other than Companies) and Minor Head 500 (Other Receipts). However, what are the transactions that are affected if the PAN is not linked to Aadhaar?
Transactions affected due to failure in linking PAN-Aadhaar
Failure in linking PAN-Aadhaar will make the PAN inoperative and the consuquences are:
-You will not be able to open a bank account.
-You will not be able to apply for a new debit or credit card.
-You will not be able to deposit more than ₹50,000 in a day in any banking company or cooperative bank.
-Although the PAN will not be terminated if it has not been linked with Aadhaar, these details cannot be used interchangeably, including cases like:
- Cash transactions of more than ₹50,000 at hotels or for foreign travel bills.
- PAN card details will be required for purchasing an immovable property worth more than ₹10 lakh.
- Purchase of mutual funds unit exceeding Rs.50,000.
- Purchase of a bank draft or pay order in cash exceeding Rs.50,000 in a day.
– According to Rule 114AAA of the Income-tax Rules, if your PAN expires or becomes invalid:
- Refunds pending for the inoperative PAN will not be issued.
- Pending income tax returns cannot be processed.
- You will be liable to pay higher taxes.
- Any pending processes, such as those involving faulty returns, cannot be completed after the PAN becomes non-functional.
-Filing income tax returns (ITR) is possible even if your PAN and Aadhaar are not linked. However, the tax department will not process your return until you link the two.
Why to link Aadhaar-PAN?
Linking your PAN with Aadhaar helps protect you from potential fraud, as it prevents others from obtaining multiple cards in your name. Once a taxpayer’s PAN is linked with Aadhaar, the Income Tax department can effectively identify and address any instances of tax evasion. Moreover, the process of filing income tax returns (ITRs) will become more streamlined, as taxpayers will no longer be required to provide additional proof of having filed their returns.
- ABOUT THE AUTHOR
Trainee Content Producer at Hindustan Times Digital Stream. India’s regional languages attract me.