In India, both the PAN card and Aadhaar card are essential documents for every citizen. The government has made it mandatory to link them. If you haven’t linked your PAN and Aadhaar yet, you could face a number of financial difficulties in the coming days. The deadline for linking your PAN with Aadhaar is December 31st, and very little time remains. What will happen
if you don’t link your PAN by December 31st?
According to Income Tax Department rules, if your PAN and Aadhaar are not linked by the deadline, your PAN card will become inoperative. Many important tasks may be stalled once your PAN becomes inactive.
Income tax-related problems
- You will not be able to file Income Tax Return (ITR) for the relevant financial year.
- If you have paid excess tax, you will not get a refund.
- TDS and TCS will be deducted on your income at a higher rate than the normal rate, which may result in loss.
Impact on investment and banking
- Forms 15G and 15H will not be accepted, which may lead to tax deduction on interest.
- There will be problems in opening a demat account or in transactions related to the stock market.
- Trading in investment schemes like mutual funds, bonds and insurance may be banned.
Major bank transactions and account operations may also be affected.
Loan problems
: If your PAN is inactive, applying for a personal loan, home loan, auto loan, or education loan will be difficult, as banks and financial institutions require an active PAN.
How to link PAN with Aadhaar?
- Linking PAN with Aadhaar is very easy and you can do it online from the comfort of your home:
- Visit the official website of Income Tax www.incometax.gov.in.
- Go to the ‘Quick Links’ section and select the ‘Link Aadhaar’ option.
- Enter your PAN number and Aadhaar number.
- Enter the name as per Aadhar card and enter the mobile number.
- Give consent to verify Aadhaar details from UIDAI.
- Once the process is completed, the message ‘PAN has been successfully linked’ will appear on the screen.