11.5 cr PAN cards deactivated for not linking with Aadhaar: How to reactivate

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A Right to Information (RTI) response from the Central Board of Direct Taxes (CBDT) has revealed that a total of 11.5 crore PAN cards were deactivated for failing to be linked with Aadhaar cards by the June 30 deadline.

India has 70.24 crore PAN card holders, of which 57.25 crore have successfully linked their PAN cards with Aadhaar. More than 12 crore PAN cards remain unlinked, with 11.5 crore  facing deactivation due to non-compliance, said reports last week.

The RTI was filed by Madhya Pradesh activist Chandra Shekhar Gaur.

“This linking of PAN and Aadhaar was required to be done on or before a notified date, failing which PAN becomes inoperative,” the RTI reply further said.

Notably, for new PAN card applicants, the Aadhaar-PAN linking is automatically processed during the application stage. However, for existing PAN holders assigned PAN on or before July 1, 2017, it is deemed “mandatory” to link their PAN and Aadhaar.

To reactivate an inoperative PAN card, the Central Board of Direct Taxes (CBDT) has imposed a penalty of Rs 1,000.

Here is how you can reactivate your PAN card:

If you have missed the Aadhaar link deadline and your PAN has become inoperative, you can reactivate your PAN by providing Aadhaar details to the I-T department.

“If a person fails to link PAN-Aadhaar by due date, he shall be liable to pay a fee, maximum of Rs. 1,000 under section 234H,” said the I-T department.

​In case your PAN is de-activated then you need to do the following:

1) You need to write a letter to your jurisdictional AO in the Income Tax Department for activation of your PAN.

2) The following documents need to be attached to the letter for activation of PAN:

Indemnity Bond in favour of the Income Tax department.

Copy of PAN on which the PAN holder is regularly filing the Income Tax Return.

Copy of last three years’ Income Tax Returns filed on the PAN de-activated.

3) It takes at least 10-15 days for the Income Tax Department to re-activate the PAN after submission of the letter to the I-T department.

Consequences of inoperative PAN:

The PAN of taxpayers who fail to provide the required Aadhaar information will become inoperative. During the period of inoperability, the following consequences will apply:

1. No refunds will be issued for transactions associated with such PANs.

2. Interest will not be payable on any refunds during the period in which the PAN remains inoperative.

3. TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) will be deducted or collected at a higher rate as stipulated in the Act.

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Pooja Gupta

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

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CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

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