The Indian government has ordered that the Permanent Account Number (PAN) and Aadhaar be linked by March 31, at the latest. Failure to comply with the order may result in the cancellation of your PAN card on April 1.

By March 31, 2023, non-exempt PAN holders must link their PAN to their Aadhaar.

“It is required. Don’t wait, connect it now! In accordance with the I-T Act, all PAN holders who are not exempt are required to connect their permanent account numbers (PAN) with their Aadhaar by March 31, 2023. The unlinked PAN will become inactive on April 1, 2023, according to public advice issued by the Income Tax Administration. To connect PAN with Aadhaar, people must pay a late charge of Rs 1,000.

Section 139AA of the Income-tax Act mandates that anybody who is eligible for an Aadhaar card must provide their Aadhaar number while registering for a PAN or filing a return of income beginning on July 1, 2017.

After March 31, the PAN cards of taxpayers who fail to link their Aadhaar as needed will no longer be valid. If you fail to connect your PAN and Aadhaar before the deadline, you may face a number of penalties.

Here are some of the potential outcomes:

  • If you do not link your PAN and Aadhaar, your PAN may become invalid. This implies that you will not be able to utilize it for official or financial operations.
  • Inability to submit Income Tax Returns (ITRs): If you fail to connect your PAN and Aadhaar, you may be unable to file your ITRs, which might result in penalties and other repercussions.
  • Loss of Tax Benefits: If your PAN becomes invalid, you may lose deductions, exemptions, and credits, among others. This might result in an increase in your tax liability.
  • Banks and other financial organizations always demand PAN and Aadhaar to create new bank accounts. Hence, if your PAN becomes invalid in the future, you may have trouble creating new bank accounts.
  • Difficulty obtaining loans and credit cards: If your PAN is invalid, you may have trouble acquiring loans and credit cards from banks and other financial organizations. This might have an impact on your creditworthiness and financial situation.
  • Individuals who are uncertain about the status of the PAN-Aadhaar linkage can readily verify it in two ways. First by SMS or the Income Tax Department’s e-filing gateway online.

Through SMS:

  • Enter “UIDPAN” followed by the 12-digit Aadhaar number and PAN. (The SMS must be formatted as UDIPANAadhaar number.
  • Step 2: Send a text message with all the information to 56161 or 567678.
  • Step 3: You will receive an immediate notification if your Aadhaar and PAN are connected.
  • Using the e-Filing Income Tax portal:
  • -Visit the website
  • -Click the ‘Link Aadhaar Status’ option inside the ‘Quick Links’ section.
  • -Enter your PAN number and 12-digit Aadhaar number, then click “See Link.”
  • -The Aadhaar number will be displayed if your PAN and Aadhaar are connected.

Persons above the age of 80 are excluded from connecting their Aadhaar to their PAN. In addition, residents of Assam, Jammu and Kashmir, and Meghalaya are excluded.