Income Tax Dept reminds taxpayers to link Aadhaar with PAN by May 31 to avoid higher TDS; here’s how to do it

The Income Tax Department on Tuesday, May 28, issued a reminder, asking taxpayers to link their Aadhaar card with the permanent account number (PAN) to avoid paying higher TDS.

The last date to link Aadhaar with PAN for avoiding tax deduction at higher rate is May 31, as announced earlier by the Central Board of Direct Taxes (CBDT). As the deadline approached closer, the I-T Department took to social media to issue a reminder to the taxpayers.

“Kind attention taxpayers, please link your PAN with Aadhaar before May 31st, 2024, if you haven’t already, in order to avoid tax deduction at a higher rate,” it posted on X (formerly Twitter).

Notably, the linking of Aadhaar with PAN was made mandatory last year. The taxpayers who are yet to complete the process can do so by paying a fine of ₹1,000.

Here’s how to link Aadhaar with PAN:

• Step 2: Enter your PAN and Aadhaar Number.
• Step 3: Click on "Continue to Pay Through e-Pay Tax".
• Step 4: Enter your PAN, confirm PAN, and any mobile number to receive OTP.
• Step 5: Post OTP verification, you will be redirected to e-Pay Tax page
• Step 6: Click on Proceed on the Income Tax tile.
• Step 7: Select the relevant Assessment Year and Type of Payment as 'Other Receipts (500)' and click 'Continue'.

Now, challan will be generated. On the next screen, you have to select the mode of payment. After selecting the mode of payment, you will be re-directed to the Bank website where you can make the payment. Post payment of fee, you can link your Aadhaar with PAN.

What will happen if you don't link Aadhaar and PAN?

Your PAN will become inoperative if you do not link it with Aadhaar, and shall face the following consequences as a result of PAN becoming inoperative:

• Refund of any amount of tax or part thereof, due under the provisions of the Income Tax Act, shall not be made.
• Tax will be deducted at a higher rate, in accordance with the provisions of section 206AA of the Income Tax Act.
• Wherever tax is collected at source, such tax will be collected at a higher rate.