The deadline to link your Permanent Account Number (PAN) with your Aadhaar card was June 30, 2023. If you haven’t linked the two yet, your PAN will be marked as “inoperative”. PAN serves as a universal identifier for financial transactions, aiding the Income Tax Department. Meanwhile, the Aadhaar number, issued by the Unique Identification Authority of India (UIDAI), acts as a comprehensive identity proof for all citizens.
Recognising the significance of these documents, the Income Tax Department made it obligatory to link PAN and UID to simplify financial transactions. Although a significant number of individuals have completed this linking, there remains a group who missed the deadline. In these instances, concerns may arise about the outcomes of not linking PAN and Aadhaar. Additionally, uncertainty exists about whether the failure to link the two impacts the direct crediting of one’s salary into their bank account.
If your PAN has become ‘inoperative’ and you have concerns about future financial transactions, here are some key points to consider.
Given the significant role of PAN in regulating financial activities, individuals often worry about salary-related matters when PAN and Aadhaar are not linked. While an “inoperative” PAN due to non-linkage with Aadhaar may pose certain challenges, it will not impact the crediting of your salary to your bank account.
Even with an “inoperative” PAN, your salary will continue to be credited as usual by your employer, and banks do not place restrictions on such transactions. While you won’t be able to furnish or quote your PAN, this specific aspect won’t affect the salary transfer process.
Occasionally, there might be a delay in receiving your salary since employers typically require a valid PAN for processing payments.
In such situations, employees should proactively communicate with their employers ahead of time to find solutions and prevent complications.
To reactivate an ‘inoperative’ PAN, individuals can do so by paying a late fee of Rs 1,000. The Central Board of Direct Taxes (CBDT) mandates that individuals inform the designated authority about the issue and make this payment.
Alternatively, one can visit the official website and submit a ‘PAN-Aadhaar’ linking request. The reactivation process for PAN is expected to take around 30 days from the date of linking.