ITR: Missed PAN-Aadhaar link by June 30? Inoperative PAN can cost you Rs 6,000; here's how

Written By DNA Web Team | Updated: Jul 07, 2023, 12:08 PM IST

With the PAN-Aadhaar linking deadline passed, your PAN card becomes inoperative, and reactivating it can take up to 30 days, potentially causing you to miss the income tax return filing deadline. Know the implications here.

If you missed the June 30, 2023 deadline to link your PAN with Aadhaar, your PAN will be marked as inoperative starting from July 1, 2023. One consequence of an inoperative PAN is the potential inability to file your income tax return (ITR) before the July 31, 2023 deadline.

If you choose to pay the penalty and wait for your PAN to become operative again, there is a risk of missing the ITR filing deadline. Late filing of ITR incurs a penalty of Rs 5,000 for individuals with a total income exceeding Rs 5 lakh.

Therefore, if your PAN is currently inoperative, you may end up paying a late filing fee of Rs 5,000 and filing a belated ITR. Additionally, linking your PAN and Aadhaar now will require an additional fee of Rs 1,000, resulting in a total payment of Rs 6,000.

It is important to note that if your total income does not exceed Rs 5 lakh, the late filing fee for belated ITR will be Rs 1,000, resulting in a total payment of Rs 2,000 (including the PAN-Aadhaar linking fee).

Taxpayers are advised to link their Aadhaar with PAN as soon as possible and file their income tax returns by the due date of July 31, 2023. In case of failure to meet the deadline, belated returns can be filed until December 31, 2023. Failure to quote an operative PAN for specified transactions may lead to complications.

Filing a belated ITR may attract penalties such as interest on unpaid tax liabilities and the loss of certain deductions and benefits available to timely filers. It may also increase the likelihood of scrutiny assessments and potential penalties in case of discrepancies.

If you have paid the penalty for PAN-Aadhaar linking on or before June 30, 2023, the income tax department will duly consider your case. Linking your PAN with Aadhaar and filing ITR on time will help you avoid the late filing fee associated with belated ITR.

If you filed your ITR on or before June 30, 2023, but have not yet linked your PAN with Aadhaar, the ITR may not be processed until the linkage is completed. To effectively file an income tax return and obtain any pending tax refunds, you must have a valid PAN card.