It has been a long time since the first circular came out making it mandatory for everyone to link their PAN and Aadhaar card together. Now if you are wondering what happens if you don’t link PAN card with Aadhaar, the answer is simple. According to the Central Board of Direct Taxes (CBDT), if you fail to link your PAN and Aadhaar card, your PAN card may become inactive. This may prevent you from making any financial transactions. So, it is better to do your Pan-Aadhaar link immediately.
If you haven’t linked your Aadhaar PAN yet, don’t worry. CBDT extended the deadline from March 31, 2022 to March 31, 2023. However, since you missed the earlier deadline, you will now have to pay a fine or penalty. If you had linked your PAN and Aadhaar card by June 30, 2022, you would have paid just ₹500. But since that date is gone, now you have to pay ₹1000 to link your PAN and Aadhaar card.
According to the Income Tax website, “Section 139AA of the Income Tax Act provides that every person allotted a Permanent Account Number (PAN) on July 1, 2017 and eligible to get an Aadhaar number shall inform his Aadhaar number in the prescribed form and manner. In other words, such persons should compulsorily link their Aadhaar and PAN before the prescribed date (Currently, 31.03.2022 without payment of fee and 31.03.2023 with payment of prescribed fee.)”