Ensuring your Aadhaar Card is linked with your PAN Card is crucial for various services like filing income tax returns (ITR), claiming tax refunds, opening a bank account, and more. If you missed the June 2023 deadline, and your PAN becomes inactive due to non-linking, don’t fret. You can still file your income tax return.
The income tax department has clarified that an inactive PAN remains usable. For individuals not needing an audit for the Financial Year 2023-24 (Assessment Year 2024-25), the deadline to file their ITR is July 31, 2024.
Remember, your PAN card becomes inactive if not linked with Aadhaar. But, you can reactivate it by paying a penalty.
Abhishek Soni, CEO and Co-founder of Tax2win, explains that even if you miss the June 2023 deadline, and your PAN becomes inactive, you can still file your income tax return. However, you won’t use Aadhaar OTP for verification. Instead, you can use alternatives like generating an Electronic Verification Code (EVC) through net banking or ATM.
What Is an Inoperative Pancard?
An inoperative PAN card refers to a situation where your PAN (Permanent Account Number) becomes inactive or unusable due to certain reasons, such as not linking it with your Aadhaar card as mandated by the government.
When your PAN card is inoperative, you may face restrictions on its usage, particularly for financial transactions and tax-related matters. However, it’s important to note that you can reactivate your PAN card by fulfilling the necessary requirements, such as linking it with Aadhaar and paying any applicable penalties.
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How to File an ITR with Inoperative PAN?
Even if your PAN is inactive, the steps for filing your ITR remain unchanged. Here’s a simple guide to help you through the process:
Step 1: Log in to your account on the income tax e-filing portal.
Step 2: Navigate to e-file > income tax return > file income tax return.
Step 3: Follow the outlined steps to complete the filing.
Step 4: Remember, you can file your ITR for FY 2022-23 (AY 2023-24) with an inactive PAN until July 31, 2023.
How to Link Aadhaar Number With PAN?
You can link your Aadhaar number with your PAN in two simple ways:
- Via SMS
- Through the e-filing portal at https://www.incometax.gov.in/iec/foportal.
Linking your Aadhaar number with your PAN card through SMS is simple. Just send a text message to either 567678 or 56161 in this format: UIDPAN followed by your Aadhaar number and PAN number. For example, send ‘UIDPAN 111122223333 AAAPA9999Q’. Your Aadhaar will be linked with PAN if your name and date of birth match on both cards.
Alternatively, you can link them through the e-filing portal. Log in using your registered username and password, then go to ‘Profile Settings’ to find the ‘link Aadhaar’ option. Again, your Aadhaar and PAN must have matching name and date of birth for successful linking.
Income Tax Refund Process
Not using your PAN card can cause problems. If you try to file your Income Tax Return (ITR) with an inactive PAN, you can’t get any refund or interest on refunds. To claim refunds, it’s necessary to link your Aadhaar and PAN.
Bharech explained, “If your PAN isn’t active, you won’t receive any refunds, and interest on refunds will start only once your PAN becomes active.”
Deadline for Updated ITR
Missed filing your income tax return (ITR)? Don’t worry! You can still submit an updated return until March 31, 2024.
You can update your returns for the years 2021-22, 2022-23, and 2023-24. Just remember, if you owe more tax, you’ll need to pay it when you submit your updated return.
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Frequently Asked Questions (FAQs)
Q.1. What happens if my PAN card becomes inactive?
Ans. If your PAN card becomes inactive due to non-linking with Aadhaar, you may face limitations in financial transactions and tax-related matters. However, you can reactivate it by fulfilling requirements such as linking it with Aadhaar and paying any applicable penalties.
Q.2. Can I still file my income tax return with an inactive PAN?
Ans. Yes, you can still file your ITR even if your PAN card is inactive. However, you won’t be able to use Aadhaar OTP for verification. Instead, you can use alternatives like generating an Electronic Verification Code (EVC) through net banking or ATM.
Q.3. How can I link my Aadhaar number with my PAN card?
Ans. You can link your Aadhaar number with your PAN card either through SMS or via the income tax e-filing portal. Ensure that the name and date of birth on both cards match for successful linking.
Q.4. What are the consequences of not linking Aadhaar with PAN?
Ans. Failure to link Aadhaar with PAN may lead to your PAN becoming inactive, resulting in limitations on its usage for financial transactions and tax-related matters.
Q.5. What is the deadline for submitting an updated income tax return?
Ans. You can submit an updated income tax return until March 31, 2024, for the assessment years 2021-22, 2022-23, and 2023-24. Ensure any additional tax owed is paid along with the updated return.
