PAN-Aadhaar Linking: Complete this important task in 6 days, otherwise your PAN card will become invalid..
PAN-Aadhaar Link: With only 6 days left in the year, the deadline for completing a crucial financial task is fast approaching. We are talking about linking your PAN card with your Aadhaar card. If you haven't linked these two documents yet, you need to be extremely careful. After December 31st, you will not only face financial losses, but your PAN card will become virtually useless.
The government and the Income Tax Department are continuously raising awareness among people to complete this process. According to the rules, linking PAN and Aadhaar is now mandatory. Those who miss this deadline may face serious difficulties. Let's understand how this will affect your finances and financial activities if you don't complete this task.
PAN will become inactive
The Income Tax Department has clarified that the deadline for linking PAN and Aadhaar is December 31, 2025. Any taxpayer who does not link their PAN with Aadhaar by this date will have to pay a penalty of Rs. 1,000. This penalty will be levied as a 'late fee' because the original deadline for linking has already passed.
The biggest concern is not just the Rs. 1000 penalty, but the fact that the PAN card will become 'inoperative' or inactive. The notification issued by the Income Tax Department on April 3, 2025, clearly states that PAN cards not linked after the stipulated date will be considered inactive in the system. This means that you will be deprived of all services where a PAN card is mandatory. Furthermore, it is also mandatory for those who have been allotted a new PAN after October 1, 2024, to complete the linking process by December 31st.
Banking and investment avenues will be closed.
If your PAN card becomes inactive, the worst impact will be on your banking services. With an inactive PAN, you will not be able to open a new account in any bank. Not only that, if you invest in the stock market, mutual funds, or equities, that too will come to a halt. A PAN card is the most crucial document for financial transactions, and without it, your entire investment plan could be jeopardized.
Furthermore, several restrictions will be imposed on banking transactions. You will not be able to deposit more than ₹50,000 in cash at the bank at one time. Also, any bank transaction exceeding ₹10,000 may face difficulties. A PAN card is also mandatory for obtaining or renewing debit or credit cards, which will not be possible if your PAN is inactive.
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Double Whammy of Tax Refunds and TDS
The most significant impact of an inactive PAN card will be on taxpayers. You will not be able to file your Income Tax Return (ITR). If any of your old refunds are pending with the Income Tax Department, they will also be held up. The problems don't end there. When your PAN is inactive, TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) deductions are made at a much higher rate than the normal rate. This will directly affect your savings.
Additionally, you will not be able to access Form 26AS, nor will you receive a TDS certificate. If you need to reactivate your PAN card or apply for a new one in the future, the process can be very long and complicated. Therefore, it is wise to link your PAN and Aadhaar today by paying the late fee of ₹1000, without waiting until December 31st, and avoid future problems.
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