Your PAN card will be inoperative if you have not linked it with Aadhaar by 30 June 2023. One of the consequences of PAN being inoperative is you may not be able to file your Income Tax Return (ITR) before 31 July 2023.
If you apply for PAN-Aadhaar linking now, it will take a minimum of 30 days for your PAN to be operative; thus, your PAN will not be operative before the ITR filing deadline, i.e. 31 July 2023. If you file your ITR after the deadline, it will be considered as a belated ITR, and you must pay a penalty of Rs.1000 or Rs.5000 for filing your ITR late.
Thus, if your PAN is inoperative, you will have to pay a penalty of Rs.1000 for linking your PAN with Aadhaar and make it operative. Plus, you will have to pay Rs.1000 for filing ITR late if your total income is below Rs.5 lakh and pay Rs.5000 if your total income is above Rs.5 lakh.
Thus, in total, you must pay Rs.6000 (Rs.1000 for linking PAN-Aadhaar and Rs.5000 for filing belated ITR) or Rs.2000 (Rs.1000 for PAN-Aadhaar linking and Rs.1000 for filing belated ITR when your total income is below Rs.5 lakh).
If you file a belated ITR and have any outstanding tax liability for the financial year, you may have to pay interest on the unpaid tax amount. Belated filing may also result in the loss of certain deductions and benefits available to taxpayers filing ITR within the prescribed deadline.
On the other hand, if you have paid a penalty for linking PAN-Aadhaar before 30 June 2023, but linking has not been done, the Income Tax Department will consider it. Thus, you can link your PAN with Aadhaar and file your ITR within the deadline.
If you have filed your ITR before 30 June 2023 and your PAN has become inoperative due to not linking it with Aadhaar, your ITR will not be processed until the PAN is linked with Aadhaar. You will also not receive tax refunds till the PAN is not linked to Aadhaar.
For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@clear.in
I am an Advocate by profession. I interpret laws and put them in simple words. I love to explore and try new things in life.
