Aadhaar-PAN Linking: Who all are exempted from this mandate?

The deadline to link the permanent account number (PAN) with the Aadhaar card is approaching near as all the users are mandated to link their PAN with their Aadhaars before March 31, 2023.  As per Section 139AA of the Income Tax Act 1961, every person eligible to obtain an Aadhaar and has PAN must link their Aadhaar with their PAN by the end of this fiscal year.

The 10-digit PAN card number would be inoperative from April 1, 2023, if Aadhaar and PAN are not linked by the specified date. The PAN-Aadhaar linkage is expressly required by the IT Department unless exempted in certain cases.

Here's the list who are exempted from linking PAN to Aadhaar  

• Individuals residing in the north-eastern state of Assam, Meghalaya, and the Union Territory of Jammu and Kashmir
• A non-resident (NRI) as per the Income Tax Act 1961
• Individuals aged 80 years or more at any time during the previous year.
• Not an Indian citizen

Notably, the Aadhaar-PAN linking was free before March 31, 2022. A fee of Rs 500 was imposed from April 1, 2022, and from July 1, 2022, it was increased to Rs 1,000. 

How to link Aadhaar with PAN card?

• Visit the official website of the Income Tax Department - www.incometax.gov.in
• First-time users must on ‘Register Here’ first.
• Go through OTP verification, create a password by providing the PAN data.
• One can log in straight into the website if already registered.
• Enter the website and find the 'Link Aadhaar' option at the bottom of the page.
• Select the option and enter your PAN number, Aadhaar number, and your registered name.
• Select the Aadhaar option from the drop-down menu to link the two numbers.

How to check if PAN is linked with Aadhaar

• Visit the Income Tax department’s official website- https://www.incometax.gov.in/iec/foportal/
• Select the ‘Quick Links’ tab.
• Check ‘Link Aadhaar Status’ option
• The page will direct to this link- https://eportal.incometax.gov.in/iec/foservices/#/pre-login/link-aadhaar-status
• Enter PAN and Aadhaar numbers 
• on ‘View Link Aadhaar Status’ once the application is filled.

What happens if you miss March 31 deadline?

• Your PAN will become inoperative unless linked with your Aadhaar
• Inability to file Income Tax returns
• Loss of Tax Benefits
• Difficulty in obtaining bank services like opening bank accounts as Aadhar and PAN are mandatory 
• Inability to access loans and credit cards
• Without PAN, a higher rate will apply to TDS/TCS deduction
• Investors will not be able to carry out any transactions in NSE or BSE