PAN-Aadhaar Linking Deadline Extended Till 31st March 2023 But Not For Free

According to the Income-tax Act, 1961, every individual who has been assigned a PAN as of July 1, 2017 and is eligible to receive an Aadhaar number is mandated to link their March 31, 2022, which was the previous deadline. However, the Central Board of Direct Taxes (CBDT) has extended the deadline until March 31, 2023, but not for free, as a result, taxpayers will be required to pay a fee. Individuals can link their PAN and Aadhaar without paying any late fees by March 31, 2022, and if they do not, their PAN will become inactive and all operations requiring a PAN would be suspended. Following submission of Aadhaar to the appropriate authorities and making a payment of a specified fee, the PAN can be rendered operational afterward.

In a circular dated 30th March 2022, CBDT has said "In order to mitigate the inconvenience to the taxpayers, a window of opportunity has been provided to the taxpayers upto 31st of March, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. As a result, taxpayers will be required to pay a fee of Rs. 500 up to three months from 1st April, 2022 and a fee of Rs.1000 after that, while intimating their Aadhaar."

CBDT has further clarified that "However, till 31st March, 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc."

"After 31st March, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers," said CBDT in the circular.

On 29th March 2022, the Ministry of Finance highlighted Income-tax (Third Amendment) Rules, 2022 to be applicable from the 1st day of April, 2022. The regulation says "Every person who, in accordance with the provisions of sub-section (2) of section 139AA, is required to intimate his Aadhaar number to the prescribed authority in the prescribed form and manner, fails to do so by the date referred to in the said sub-section, shall, at the time of subsequent intimation of his Aadhaar number to the prescribed authority, be liable to pay, by way of fee, an amount equal to five hundred rupees, in a case where such intimation is made within three months from the date referred to in sub-section (2) of section 139AA; and one thousand rupees, in all other cases."

The Income Tax Department has mentioned on its website that "Aadhaar PAN linking date extended till 31st March 2023 subject to payment of fee for Rs. 500/- till 30th June 2022 and Rs. 1,000/- thereafter."

The taxpayer must use his or her registered username and password to access the e-Filing portal. He or she will find the "link Aadhaar" option under the "Profile Settings" after logging in. PAN-Aadhaar linking can also be done offline by sending an SMS to 567678 or 56161 with the following format:

UIDPAN(space)(12 digit Aadhaar)(space)(10 digit PAN)

Example: UIDPAN 000000000000 ABCDE9999F

If the taxpayer's name and date of birth are the same as those on Aadhaar and PAN, the two primary documents will be linked successfully. According to the FAQs of the Income Tax Department "The applicant has to pay a fee of Rs. 93 + GST as applicable, per PAN application. In case, the PAN card is to be dispatched outside India then the fee for processing PAN application is Rs. 864 (Rs. 93 application fees and Rs. 771 dispatch charges)/- will have to be paid by applicant. (plus GST as applicable)​​."