Here's What Will Happen If You Don't Link Your PAN and Aadhaar By March 31

It has been quite a long time since the first circular came out, making it mandatory for everyone to link their Permanent Account Number (PAN) with Aadhaar. This has been implemented to ensure that all taxpayers have a unique identification number linked to their PAN, which will in turn help curb tax evasion.

All the taxpayers have to mandatorily link the two by March 31, 2023, failing which they will be liable to consequences under the I-T Act and have to suffer a number of implications, according to a circular issued by the Central Board of Direct Taxes (CBDT).

Now, as the last day to link the two cards is fast approaching, here's what will happen if you do not link them:

According to the Income Tax Department, if you do not link your Aadhaar and PAN before the March 31 deadline, then your PAN will become inoperative. According to a CBDT circular, "Rule 114AAA of the Income-tax Rules provides that if PAN of a person has become inoperative, he will not be able to furnish, intimate or quote his PAN and shall be liable to all the consequences under the Act for such failure."

If you link your PAN with your Aadhaar now, then you are also liable to pay a late fee of Rs 1,000 as the last date for linking without penalty was June 30, 2022, which has already passed.

Also Read | Step-By-Step Guide To Check Aadhar-PAN Card Link Status

Filing an Income Tax Return (ITR) may also become challenging if the PAN and Aadhaar numbers are not linked. Your ITR may be rejected by the Income Tax Department. The I-T Department might also prevent you from filing your ITR, potentially hindering your ability to receive a tax refund.

According to BQ Prime, if the two cards are not linked, it may cause difficulties when trying to access certain government services, such as obtaining subsidies, applying for a passport, and opening a bank account. If the two documents are not linked, it may be problematic when attempting to make use of these services.

Also Read | Aadhaar-PAN Linking By March 31: How To Pay The Fees

Obtaining a new PAN might also become difficult if it is not linked to Aadhaar. If your PAN card is lost or damaged, it may get difficult for you to get a new one without linking the two documents. Notably, the government has also made it mandatory to include the Aadhar card number when applying for a new PAN card.