Who needs to link PAN with Aadhaar?

Every individual who has been allotted a PAN as of July 1, 2017, and is eligible to obtain an Aadhaar number must link their PAN with Aadhaar.

Who is exempt from linking PAN with Aadhaar?

Individuals residing in Assam, Jammu and Kashmir, and Meghalaya, non-residents as per the Income-tax Act, those aged 80 years or more at any time during the previous year, and non-citizens of India are exempt from this requirement.

How can I link my PAN with Aadhaar?

You can link your PAN with Aadhaar on the Income Tax e-filing portal using the ‘Link Aadhaar’ option available in both pre-login and post-login modes.

What happens if I don’t link my PAN with Aadhaar?

If you do not link your PAN with Aadhaar, your PAN will become inoperative. This means you may face higher TDS/TCS rates, and you won’t be able to file income tax returns or receive refunds.

What should I do if there is a mismatch in my details between PAN and Aadhaar?

You need to correct the details in either the PAN or Aadhaar database to ensure they match.

Who needs to link PAN with Aadhaar?

Every individual who has been allotted a PAN as of July 1, 2017, and is eligible to obtain an Aadhaar number must link their PAN with Aadhaar.

Who is exempt from linking PAN with Aadhaar?

Individuals residing in Assam, Jammu and Kashmir, and Meghalaya, non-residents as per the Income-tax Act, those aged 80 years or more at any time during the previous year, and non-citizens of India are exempt from this requirement.

How can I link my PAN with Aadhaar?

You can link your PAN with Aadhaar on the Income Tax e-filing portal using the ‘Link Aadhaar’ option available in both pre-login and post-login modes.

What happens if I don’t link my PAN with Aadhaar?

If you do not link your PAN with Aadhaar, your PAN will become inoperative. This means you may face higher TDS/TCS rates, and you won’t be able to file income tax returns or receive refunds.

What should I do if there is a mismatch in my details between PAN and Aadhaar?

You need to correct the details in either the PAN or Aadhaar database to ensure they match.

How can I link my PAN with Aadhaar?

You can link your PAN with Aadhaar on the Income Tax e-filing portal using the ‘Link Aadhaar’ option available in both pre-login and post-login modes.

How can I link my PAN with Aadhaar?

You can link your PAN with Aadhaar on the Income Tax e-filing portal using the ‘Link Aadhaar’ option available in both pre-login and post-login modes.

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PAN-Aadhaar Link Update: No Need To Pay Higher TDS/TCS For Certain Deductees

Pragya Pathak

Author

Updated: 28-01-2025 at 6:40 AM

PAN-Aadhaar Link Update: No Need To Pay Higher TDS/TCS For Certain Deductees

CBDT is the responsible authority for determining tax rates in the country. It issues guidelines, rules, regulations and clarifications from time to time. With the recent mandate of linking PAN with aadhaar, certain concerns have arised. In a recent circular, the Central Board of Direct Taxes issued certain directions. Let us read what these are!

What Are The Recent CBDT Guidelines?

Through a circular dated August 5, 2024, the central board of direct taxes clarified and issued a guideline regarding applicable TDS/TCS rates in light of the recent PAN-aadhaar linking exercise.

The tax regulatory authority has directed that higher rates of TDS/TCS shall not be applicable in case the deductee or collector passes away within the prescribed time limit, i.e., on or before May 31, 2024.

The authority received multiple concerns and complaints wherein the collected or deductee passed away within the specified time frame. This way, they were not able to exercise the option of getting their PAN and aadhaar linked. Multiple complaints regarding pending tax proceedings due to the deductor’s or collector’s inability to link the PAN and aadhaar of the deceased were also received by the regulator.

What Are The New Aadhaar-PAN Linking Requirements?

As per the new rules issued, taxpayers are required to link their PAN card with their Aadhaar card before May 31, 2024 failing to do which, TDS will be deducted at the rate of 20% from the defaulting parties. The applicable TCS rates will also be raised to 5% in lieu of the provisions of Section 206CC of the Income Tax Act, 1961.

The CBDT while addressing the stakeholders through a circular said that “ In order to redress such grievances of the taxpayers, the Board, hereby specifies that in respect of cases where higher rate of TDS/TCS was attracted under section 206AA1206CC of the Act pertaining to the transactions entered into upto 31.03.2024 and in case of demise of the deductee/collectee on or before 31.05.2024 i.e. before the linkage of PAN and Aadhaar could have been done, there shall be no liability on the deductor/collector to deduct/ collect the tax under section 206AA1206CC, as the case maybe. The deduction/collection as mandated in other provisions of Chapter XVII-B or Chapter XVII-BB of the Act, shall be applicable.”

While the last date for linking PAN with aadhaar has lapsed, you can still link them. However, you will have to pay higher TDS/TCS tax rates and will have to pay a fine of Rs. 1000. Let us learn how to link PAN-aadhaar.

How To Link PAN With Aadhaar?

Visit the official website of the Income Tax Department.
Under the quick links tab, click on the ‘link aadhaar’ option.
Enter your details and get your aadhaar details validated.
Enter the captcha code.
An OTP will be sent to your registered mobile number and click the validate button after that.
Your process will be completed.

Conclusion

It is very essential for every taxpayer to comply with the rules and regulations issued by CBDT and the Income Tax Department. Non-compliance of such guidelines can lead to default on the part of the taxpayer and may require depositing fines or other legal action.

To keep you up to date with all such necessary information about tax, Jaagruk Bharat brings to you authentic and accurate information. Stay tuned with us for more such information!

You can find the original CBDT circular here.

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