The Indian government has collected more than ₹600 crore in penalties from individuals who failed to link their Permanent Account Number (PAN) with Aadhaar within the stipulated deadline. As of January 29, 2024, approximately 11.48 crore PANs are yet to be linked with Aadhaar, as revealed by Minister of State for Finance Pankaj Chaudhary in a written reply in the Lok Sabha.
The penalties collection is a consequence of the Income Tax Department’s order that PAN cards would become inoperative if taxpayers failed to link them with Aadhaar by the specified deadline of June 30, 2023. Additionally, no refunds would be issued against such PANs, and a higher rate of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) deductions or collections would be applicable for non-compliance. Individuals facing inoperative PAN cards have the option to make them operational again by paying a penalty of ₹1,000.
To re-activate an inoperative PAN card, individuals can follow these steps:
- Visit the Income Tax e-filing portal: https://incometaxindiaefiling.gov.in/
- Register on the portal if you are a new user.
- Click on the ‘e-Pay Tax’ option under ‘Quick Links’ to pay the penalty.
- Choose CHALLAN No./ITNS 280 for the submission of the Aadhaar-PAN linking request.
- Pay the penalty under Minor head 500 (Fee) and Major head 0021 [Income Tax (Other than Companies)] in a single challan.
- Select your preferred mode of payment.
- Enter PAN details, assessment year, and address.
- Type the Captcha code and proceed with the payment.
- After making the payment, log in to the Income Tax e-filing portal using PAN details, password, and date of birth.
- A pop-up window will appear to link PAN with Aadhaar. If not, go to ‘Profile Settings’ on the Menu bar and click on ‘Link Aadhaar.’
- Enter required details, such as date of birth, gender, etc., matching those on the PAN card.
- Verify details with those on Aadhaar, enter the Aadhaar number, and click “link now.”
- A pop-up message will confirm the successful linking of PAN with Aadhaar.
The government’s proactive measures aim to ensure compliance with Aadhaar-PAN linkage for efficient tax administration and streamlined financial transactions.
