According to a circular issued by the PFRDA on May 2, 2023, the deadline extension aligns with the CBDT press release dated March 28, 2023. PAN is a crucial identification number and a requirement for Know Your Customer (KYC) compliance in NPS accounts. The PFRDA emphasizes that all intermediaries involved must ensure valid KYC for subscribers Existing subscribers are also asked to link their PAN with Aadhaar before June 30, 2023 in order to ensure uninterrupted service and prevent non-compliance consequences because unlinked NPS accounts would be deemed non-KYC compliant, which may result in transaction limitations.

 

The CBDT had previously announced the extension of the PAN-Aadhaar linking deadline to June 30, 2023. This marks the fifth time the deadline has been postponed.

 

Regarding the penalty for PAN-Aadhaar linking, if the link is established on or after July 1, 2022, a fee of Rs1,000 will be imposed. The fee structure has now been separated into individual components, and no refunds will be issued for the fee paid under section 234H for late PAN-Aadhaar linkage.

 

As per the provisions of the Income-tax Act, 1961, anyone who has been allotted a PAN as of July 1, 2017, and is eligible to obtain an Aadhaar Number must intimate their Aadhaar information to the prescribed authority by March 31, 2023, with the payment of the prescribed fee, according to the CBDT.

 

Failure to link PAN with Aadhaar will attract repercussions under the Act starting from April 1, 2023. However, the deadline for intimating Aadhaar information for PAN-Aadhaar linking has now been extended to June 30, 2023, according to the CBDT.

 

To link PAN with Aadhaar and avoid further repercussions, individuals can follow these steps on the Income Tax website after paying the Rs1,000 late fee penalty:

1. Visit the e-Filing portal homepage and click on "Link Aadhaar" in the Quick Links section.

2. Enter your PAN and Aadhaar numbers.

3. Click on "Continue to Pay Through e-Pay Tax."

4. Provide your PAN, confirm PAN, and mobile number to receive the OTP.

5. After OTP verification, you will be redirected to the e-Pay Tax page.

6. Click on "Proceed" on the Income Tax tab.

7. Select the assessment year as 2023-24 and the type of payment as "Other Receipts (500)" and click "Continue."

8. The applicable amount will be pre-filled under "Others."

 

Alternatively, if you have a bank account not listed for payment h e-Pay Tax, please follow the steps as under:

Step:8b(i) Click on hyperlink given below on e-Pay tax page to redirect to Protean (NSDL) portal

 

Step:8b(ii) You will be redirected to the Protean portal. Click Proceed under Challan No./ITNS 280

 

Step:8b(iii) Select Tax applicable as 0021 and Type of Payment as 500

 

Step:8 b (iv) Provide other mandatory details and Proceed.

 

Please select the Assessment Year 2023-24 for making late fee payment for Aadhaar PAN linkage.

 

Starting from July 1, 2023, taxpayers' PANs will become inactive if they fail to provide their Aadhaar information. During this period, the following consequences will apply:

 

The PAN can be reactivated after informing the appropriate authority and paying a fee of Rs. 1,000, following a waiting period.