If you have not linked your PAN with Aadhaar by June 30, 2023, you won't be able to use your PAN for certain financial tasks. However, there is no extension of the last date announced by the government yet.
If your PAN has become inoperative, then check these simple step-by-step guide to make it operational. PAN will be operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of Rs 1000.
According to Rule 114AAA of the Income-tax rules, if a PAN of a person has become inoperative, they will not be able to furnish, intimate, or quote their PAN and shall be liable to all the consequences under the Act for such failure.
As per the CBDT circular in March 2023, PAN can be made operative again in 30 days, after payment of a fee of Rs 1,000 upon intimation of Aadhaar to the prescribed authority. However, till the time PAN is inoperative, all rules will apply, such as;
This will have a number of implications such as:-
- The person will not be able to file a return using the inoperative PAN
- Pending returns will not be processed
- Pending refunds cannot be issued to inoperative PANs
- Pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative
- Tax will be required to be deducted at a higher rate as PAN becomes inoperative
