In response to an unstarred question posed by Smt. Phulo Devi Netam in the Rajya Sabha, the Ministry of Finance, Department of Revenue, Shri. Pankaj Chaudhary has disclosed key information regarding the linking of PAN cards with Aadhaar numbers and the consequential impact on non-compliance.
(a) PAN-Aadhaar Linking Statistics Till June 30th, 2023:
As of June 30th, 2023, a staggering 54,67,74,649 PAN cards have been successfully linked with their corresponding Aadhaar numbers.
(b) Deactivation Due to Non-Linking:
Contrary to concerns, no PAN cards have been deactivated due to non-linking with Aadhaar. Instead, PAN cards are rendered ‘inoperative’ if not linked.
(c) Consequences of Inoperative PAN:
The consequences of having an inoperative PAN, as outlined in Circular No. 03 of 2023, include:
– Refund of tax withheld under the Income-tax Act, 1961, will not be issued.
– No interest will be payable on such refunds.
– Higher tax deduction rates under Section 206AA for individuals subject to tax deduction at source.
– Higher tax collection rates under Section 206CC for those liable to tax collection at source.
(d) Reactivation Procedure:
Given the affirmative response to (b), there is no current procedure for reactivating PAN cards due to non-linking with Aadhaar.
(e) Fee for Linking Aadhaar with PAN:
A total of 2.125 crore individuals have willingly paid ₹1,000 each for linking their Aadhaar with PAN between July 1st, 2022, and November 30th, 2023. This has resulted in a substantial collection of ₹2,125 crore.
This comprehensive update from the Ministry of Finance provides the data on the PAN-Aadhaar linking process, late fee and its implications for taxpayers across the country.
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