PAN-Aadhaar linking
PAN-Aadhaar Link: There are now 6 days left for the end of the year and with this the deadline to complete a very important financial task is also approaching. We are talking about linking your PAN card with Aadhar card. If you have not yet linked these two documents, then you need to be alert immediately. After the date of 31st December, not only will you have to suffer financial loss, but your PAN card will also become like a piece of waste paper.
The government and the Income Tax Department are constantly making people aware to complete this process. According to the rules, linking PAN and Aadhaar is now mandatory. Those who miss this deadline may have to face huge difficulties. Let us understand what effect it will have on your pocket and your financial activities if you do not do this work.
PAN will be deactivated
The Income Tax Department has made it clear that the deadline for linking PAN and Aadhaar is December 31, 2025. Any taxpayer who does not link his PAN with Aadhaar by this date will have to pay a fine of Rs 1,000. This penalty will be charged as ‘Late Fee’ as the original deadline for linking has already passed.
The biggest worry is not just the fine of Rs 1000, but the PAN card becoming ‘inoperative’. In the notification issued by the Income Tax Department on April 3, 2025, it is clearly stated that PAN cards which are not linked after the prescribed date will be considered inactive in the system. This simply means that you will be deprived of all those facilities where use of PAN card is mandatory. Apart from this, it is mandatory for those who have been allotted new PAN after October 1, 2024, to complete the linking process by December 31.
Banking and investment avenues will be closed
If your PAN card becomes inoperative, its worst impact will be on your banking services. With an inactive PAN you will not be able to open a new account in any bank. Not only this, if you invest in stock market, mutual funds or equity, that will also stop. PAN card is the most important document for financial transactions and without it your entire investment planning can go haywire.
Apart from this, many restrictions will also be imposed in banking transactions. You will not be able to deposit more than Rs 50,000 in cash at a time in the bank. Also, any bank transaction above Rs 10,000 may face problems. PAN is also mandatory for making or renewing a debit or credit card, which will not be possible in case of an inactive PAN.
Double whammy of tax refund and TDS
Inactivation of PAN card will have the biggest impact on tax payers. You will not be able to file your Income Tax Return (ITR). If any of your old refunds are pending with the Income Tax Department, that too will get stuck. The problem does not end here. When your PAN is not active, TDS and TCS are deducted at a higher rate than the normal rate. This will have a direct impact on your deposited capital.
Also, you will not be able to use Form 26AS nor will you be able to get the TDS certificate. If in future you have to renew your PAN card or get a new one made, then that process can be very long and complicated. Therefore, it is wise that without waiting for 31st December, link your PAN and Aadhaar by paying late fee of Rs 1000 today itself and avoid future problems.
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