Is Aadhar and PAN not linked becomes inoperative after 31st March 2020?

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As per the CBDT recent notification, the last date of linking PAN with Aadhaar is March 31, 2020, after which PAN and Aadhar become inoperative if not linked.

Below are several instances that what will happen if your PAN is not linked with your Aadhaar by the March 31 deadline and what the latest CBDT notification states-

Q- What happens if PAN becomes inoperative?

If your PAN is not linked with Aadhaar by the current deadline of March 31, 2020, then the PAN will become inoperative. An individual having an inoperative PAN will not be able to conduct financial transactions wherever quoting it is mandatory.

Q- What if I link my PAN with Aadhaar after April 1, 2020?

The CBDT notification has clarified that once the PAN has been linked with Aadhaar, then the PAN will become operative again from the date on which PAN has been liked with Aadhaar. Gopal Bohra, Partner, NA Shah Associates LLP says, “As per the notification, PAN will become inoperative from 1 April 2020 till the time it is linked subsequently.”

This would mean that once an inoperative PAN becomes operative (i.e., after linking with Aadhaar), then a person can quote their PAN, wherever quoting it is mandatory. Although your PAN will become operative once you link with your Aadhaar, it is advisable to link the two before the deadline.

Q- What is the Consequence of using inoperative PAN?

According to income tax laws, if an individual’s PAN becomes inoperative because of not linking with Aadhaar by March 31, and such person is required to furnish, intimate or quote PAN, then it shall be deemed that she/he has not furnished/intimated/quoted PAN and will be liable for all consequences under the Income Tax Act.

Q- How to check the operational status of PAN?

In order to check whether PAN is operative or not, the notification also prescribes that the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the formats and standards along with the procedure for verifying the operational status of PAN.

Q- What is the process of linking PAN with Aadhaar?

An individual can link their PAN with Aadhaar number either by visiting the income tax department’s e-filing website or by sending SMS PAN Service providers (NSDL/UTIITL) either on 567678 or 56161 in a specified format. Further, an individual can check if their PAN is linked with Aadhaar or not. The same can be checked on the official e-filing website.

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