PAN card is very important document of Every Indian Citizen, do you know your PAN card may be Expire/Inoperative? What happened in this case? How to Check is PAN is Expired or not? all of this is covered below:
How to Check PAN Status:
First step is to check your PAN status, You can easily check your PAN status by following these steps:
Visit the Income Tax Portal:
- Go to the official website: Income Tax Portal.
Navigate to ‘Quick Links’:
- Select ‘Verify PAN Status’
Enter Details:
- Enter your PAN number, Full name and Date of Birth along with an active mobile number to receive an OTP.
Enter OTP and Check Status:
- Enter the OTP received on your mobile and check the status.
Watch this video for more information: PAN-Status
Why Link PAN with Aadhaar?
The Income Tax Department has issued a crucial reminder for taxpayers to link their Permanent Account Number (PAN) with their Aadhaar by May 31, 2024. Failure to do so will result in your PAN becoming inoperative, rendering it unusable for financial transactions, KYC processes, and more.
Linking your PAN with Aadhaar is not just a regulatory requirement but also essential to avoid higher tax deductions. If your PAN is not linked with Aadhaar, Tax Deducted at Source (TDS) will be deducted at a higher rate of 20%. This can significantly impact your finances, making the linking process indispensable.
Consequences of Not Linking PAN with Aadhaar
If you do not link your PAN with Aadhaar by the deadline, your PAN will become inoperative, leading to several complications:
- No Refunds: Refunds will not be processed against such PANs.
- Higher TDS and TCS: TDS (Tax Deduction at Source) and TCS (Tax Collection at Source) will be deducted/collected at a higher rate.
- Income Tax Return Filing: Filing an Income Tax Return will not be possible.
- Financial Transaction Difficulties: Your PAN card will stop functioning, leading to difficulties in bank transactions, investments, and other financial activities.
Additional Impact on Property Transactions
When purchasing property valued at more than ₹50 lakh, you must deduct TDS at 1%. However, if the seller’s PAN is inoperative, the TDS must be deducted at 20%. Always check the PAN-Aadhaar link status of the seller before depositing TDS to avoid compliance issues.
Steps to Link PAN with Aadhaar
If you missed the deadline, you can still link your PAN with Aadhaar by following these steps:
- Pay the Penalty:
- Pay the penalty through the e-Pay Tax functionality on the Income Tax e-Filing website.
- Submit the Linking Request:
- Submit the Aadhaar linking request on the e-Filing portal.
Watch this video to link your PAN with Aadhaar: Link PAN with Aadhaar.
PAN-Aadhaar Link Fees/Charges
Linking your PAN with Aadhaar after the deadline incurs a penalty of ₹1,000. This fee must be paid when you raise a linking request via the Income Tax website.
Exempt Categories
Certain individuals are exempt from the PAN-Aadhaar linking requirement, including:
- Residents of Specific States: Jammu and Kashmir, Assam, and Meghalaya.
- Non-Resident Taxable Persons: As per the Income-tax Act, 1961.
- Super Senior Citizens: Individuals aged more than 80 years.
- Non-Citizens: Persons who are not citizens of India.
Watch this video for more details: Exemptions Explained.
Conclusion
Linking your PAN with Aadhaar is a vital step to ensure seamless financial transactions and avoid penalties. If you haven’t linked your PAN with Aadhaar yet, make sure to do so before the deadline to avoid higher tax deductions and other financial complications. Regularly check your PAN-Aadhaar link status and follow the proper procedures to maintain your financial health. For those involved in high-value property transactions, ensure the seller’s PAN is linked with Aadhaar to avoid hefty penalties and compliance issues.
Watch this video for additional guidance: PAN-Aadhaar Linking Guide.
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