“Since PAN is the one of the key identification number and part of Know Your Customer (KYC) requirements for NPS accounts, all concerned intermediaries are required to ensure valid KYC for all the subscribers. All existing subscribers are also required to ensure linking of their PAN with Aadhaar number prior to June 30, 2023, for continual and smooth transactions and to avoid consequences of non-compliance with the said CBDT circular, as such NPS accounts would be considered non-KYC compliant, and there could be restrictions on NPS transactions until the PAN and Aadhaar are linked,” according to the PFRDA circular dated March 23, 2023.
CBDT announced on March 28 of this year that the deadline for linking PAN with Aadhaar had been extended to June 30. The deadline for PAN- Aadhaar had been postponed by CBDT five times until now.
What is the fine for linking PAN- Aadhaar?
If the PAN-Aadhaar link is completed on or after July 1, 2022, a Rs.1,000 fee will be levied. The fees have now been dismantled into their individual components. Under no circumstances can the fee paid u/s 234H for late PAN-AADHAAR linkage be refunded.
Who has to link PAN with Aadhaar?
According to the CBDT, “Under the provisions of the Income-tax Act, 1961(the ‘Act’) every person who has been allotted a PAN as of 1st July 2017 and is eligible to obtain an Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March 2023, on payment of a prescribed fee.”
Failure to link
Failure to do so shall attract certain repercussions under the Act w.e.f. 1st April 2023. The date for intimating Aadhaar to the prescribed authority for the purpose of linking PAN and Aadhaar has now been extended to 30th June 2023, CBDT added.
How to link Pan-Aadhaar with penalty
Individuals who wish to link can follow the below steps according to the Income Tax website. Note that before linking, one has to pay the penalty of Rs 1000.
Step:1 Visit e-Filing portal Home page and click on Link Aadhaar in Quick Links section.
Step:2 Enter your PAN and Aadhaar Number
Step:3 Click on Continue to Pay Through e-Pay Tax.
Step:4 Enter your PAN, Confirm PAN and Mobile number to receive OTP
Step:5 Post OTP verification, you will be redirected to e-Pay Tax page.
Step:6 Click on Proceed on the Income Tax tab.
Step:7 Select AY as 2023-24 and type of Payment as Other Receipts (500) and click Continue.
Step:8(a) Applicable amount will be pre-filled against Others.
Alternatively, if you have a Bank account which is not listed for payment through e ..
Who fail to link after July 1, 2023
Taxpayers’ PANs will no longer be active starting on July 1st, 2023 if they fail to provide their Aadhaar information as required. During this time, the following repercussions will apply.
No refund shall be made against such PANs;
Interest shall not be payable on such refund for the period during which PAN remains inoperative;
TDS and TCS shall be deducted /collected at higher rate, as provided in the Act
The PAN can be made operational again after 30 days after informing the appropriate authority and paying a cost of Rs.1,000.