Unlinked PAN and Aadhaar;The deadline for linking your PAN (Permanent Account Number) with your Aadhaar card was June 30, 2023. If you missed the deadline, your PAN might now be marked as “inoperative.” While PAN serves as a universal identifier for financial transactions and aids the Income Tax Department, Aadhaar, issued by the Unique Identification Authority of India (UIDAI), acts as a comprehensive identity proof for all citizens. The Income Tax Department made it mandatory to link PAN and UID to simplify financial transactions, yet some individuals missed the deadline. This has led to concerns about the implications of not linking PAN and Aadhaar, especially regarding the direct crediting of salaries into bank accounts.
If you find yourself with an “inoperative” PAN and worry about future financial transactions, consider these key points:
Despite the significant role of PAN in regulating financial activities, the non-linkage of PAN and Aadhaar shouldn’t affect the crediting of your salary to your bank account. Even if your PAN is “inoperative,” your employer will continue to credit your salary as usual. Banks typically don’t impose restrictions on such transactions. Although you won’t be able to provide your PAN, it won’t hinder the salary transfer process.
While salary crediting will likely proceed smoothly, there could be occasional delays due to employers requiring a valid PAN for payment processing.
In such cases, proactive communication with your employer is advised to address potential complications and find solutions.
To reactivate an “inoperative” PAN, you can pay a late fee of Rs 1,000. The Central Board of Direct Taxes (CBDT) requires individuals to inform the designated authority about the issue and make the necessary payment.
Alternatively, you can visit the official website and submit a “PAN-Aadhaar” linking request. Reactivating PAN is anticipated to take around 30 days from the linking date.