Permanent Account Number (PAN) allotted on the basis of Enrolment ID of Aadhaar application form filed prior to October 1, 2024 can be linked with Aadhaar without late fee till December 31, Finance Ministry has said. Linking of PAN with Aadhar is mandatory.
“The Central Government hereby notifies that every person who has been allotted permanent account number on the basis of Enrolment ID of Aadhaar application form filed prior to the 1st day of October, 2024, shall intimate his Aadhaar number to the Principal Director General of Income Tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the said authorities on or before the 31st day of December, 2025 or such date as may be specified by the Central Board of Direct Taxes in this behalf,” a Finance Ministry official said.
Explaining this, a senior tax official said that as of now, no late fee has been prescribed for these cases. A liberal time period has been allowed till December 31, 2025 to such persons for linking PAN and Aadhar. “This liberal regime has to be seen in the context of ‘Trusting the Taxpayer’”, the official said.
According to an tax expert, it is important to note that such extension is only for PAN allotted basis Enrolment ID of Aadhar application form. In any other cases, where PAN and Aadhar number were available but not yet linked, those cases are already liable for penalty as provided in the Income Tax Act and Rules as the last date to link PAN and Aadhar has already lapsed.
As on date, every person who has been allotted permanent account number as on July 1, 2017, and who is eligible to obtain Aadhaar number, is mandated to intimate his Aadhaar number to tax authority on or before a date to be notified by the Central Government. In case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be made inoperative after the date notified. Post due date, PAN-Aadhar linking can be done by paying ₹500 (within 3 months of last date) and ₹1000 (after three months).
In case of non linking, as he said, if the Aadhar number is not intimated within the stipulated timeline, it will make the PAN inoperative and as a consequence, refunds and interest thereon to such applicants shall not be paid. Also, “tax will liable to be deducted/collected at higher rates in accordance with provisions of section 206AA (which prescribe higher rates of deduction as compared to the rates applicable to an operative / valid PAN) or 206CC (higher rates are prescribed under this section for collection of taxes for non-availability of PAN),” he said.
