The Government’s push to connect PAN, as well as Aadhaar, has been ongoing for a long time; however, the Government has become very strict in its approach and, as of today, Aadhaar and PAN will be linked once paying the cost of 11,000 rupees. Earlier the date was 31st March 2023, but now Govt has extended it to June 30, 2023. If you don’t connect to your PAN with your Aadhaar, the PAN number will be inactive. Let’s look at this law and what could result when you cannot connect your PAN number to your Aadhaar. In addition, we will also look at the issue with taxpayers whose PAN is not connected to their Aadhaar currently and what the Government can do to resolve the issue.

Although the procedure has been in progress for a long time, currently, when your PAN isn’t connected to an Aadhaar, you can get it linked before June 30, 2023, after paying an extra fee of Rs.1000.00 . Suppose your PAN isn’t Aadhaar connected by June 30, your PAN will not be operational starting July 1, 2023, and be aware of the necessary consequences. You won’t be able to make income tax returns, refunds won’t be processed immediately, and your TDS (where applicable) will be taken at the highest rate unless the time your PAN is activated once again.

What does SEBI have to say about It?

SEBI is also releasing guidelines that should be followed if PAN and Aadhaar do not have a connection until June 30, then there might be issues when investing. Beyond that, however, your GST Number is generated through the PAN. So when the PAN number goes inactive, there could be issues there as well. 

Also, in the bank, your PAN number is a significant identification proof, so you could also face issues there. Therefore you must be cautious in this regard. It is worth noting what the reason that many PAN and Aadhaar aren’t linked yet is. The most important reason is the fact that at the time Aadhaar was first introduced in the beginning, there was no intention to have it connected to PAN, and therefore the information included in Aadhaar when it was issued Aadhaar differed slightly from PAN in a lot of cases, and currently in these instances, it’s not tied to PAN. PAN Aadhaar is not being connected due to the different spellings of surname and name or the date of birth.

Can I Change My Name On an Aadhar Card?

Another point is that the person’s name on Aadhaar can be changed through the PAN card, however when the date of birth must be changed in Aadhaar, this is only possible to correct it using the birth certificate or passport of the university or board that is authorised and the people left are mainly those with none of the three, and a majority of them are older and, for them, it’s an issue. 

You can change the name by providing the PAN card if the name is different. However, this is not the case with the Date of Birth. This isn’t even saying that the remaining individuals aren’t trying. However, those with PAN cards as well as Aadhaar are also able to avail the benefit of changing names as per PAN card; however, should they not have the proof required to prove dates of birth in these cases, only the birth date recorded in the PAN card must be entered into Aadhaar to address this issue.

What Are The Issues Linked With PAN And Aadhar?

When they took the PAN Number and birth date, it was recorded solely on some facts, and the law prohibits this from being done. They will be unable to verify their birth date, and their Aadhaar and PAN are not linked, and in such cases, the issue will continue to be intractable. Undoubtedly, the Government has put a lot of time into this issue and has also introduced late fees for this purpose over some time. In addition, it is stated that this will resolve the issue of duplicate and fraudulent pan cards. However, it is still recommended to grant relief when there are real difficulties because the Government of India issues both cards. The Aadhaar was issued a lot later than the Government ought to have linked it to PAN when it was issued, i.e., at the date of the issue of Aadhar; however, this was not done. Therefore in some instances, the problem remains. The inconsistency with Aadhaar in the case of PAN is due to the person applying for the card’s ignorance that the PAN will be linked to Aadhaar in the future. The Government should grant an additional three months to taxpayers before taking the steps as previously mentioned and, if needed, some flexibility, particularly in cases of a difference in date of birth in Aadhar and PAN, must be granted to ensure it is possible that PAN and Aadhar can be easily linked. Most taxpayers will be shielded from the negative consequences of the steps made if PAN and Aadhar are not linked.

Note: You can link your PAN card with Aadhaar by visiting Income Tax Online Portal.