As of June 30, 2023, individuals who failed to link their PAN (Permanent Account Number) with their Aadhaar Card witnessed their PAN cards becoming inoperative. A question that has arisen among many is whether their salary would still be credited to their bank accounts in such cases. This article delves into the consequences of an inoperative PAN card and clarifies how it affects salary crediting.
Understanding the Inoperative PAN Card
Following the deadline for linking PAN with Aadhaar, which was originally set for March 31, 2022, individuals who failed to comply found their PAN cards declared as “inoperative.” However, it’s important to note that having an inoperative PAN card does not hinder the process of salary crediting. Even though individuals with an inoperative PAN cannot use or disclose it, their employers can still deposit their salaries into their bank accounts without any restrictions imposed by the banks.
The penalty for not linking Aadhaar with PAN was initially set at Rs 500 until June 30, 2022, after which it increased to Rs 1,000, effective from July 1, 2022. Remarkably, this penalty amount remains unchanged despite the extension of the PAN-Aadhaar linking deadline to June 30, 2023.
Also Read: Income Tax Department’s Big Announcement For Salaried Employees, In-Hand Salary Will Increase From Today
How to Link PAN with Aadhaar
To link your Aadhaar with your PAN online, follow these simple steps:
- Visit the official Income Tax e-filing website at www.incometax.gov.in.
- Log in to the income tax portal using your login credentials.
- A pop-up window may appear; if not, go to Profile Settings in the Menu Bar and select the ‘Link Aadhaar’ option.
- A new window will open, prompting you to enter your PAN number, Aadhaar details, name, and mobile number in the provided fields.
- After verifying the information, select the ‘I agree to validate my Aadhaar details’ option.
- Click the ‘Continue’ button.
- You will receive a one-time password (OTP) on your registered mobile number.
- Enter the OTP on the screen and click the ‘Validate’ button.
- Once you have paid the penalty (if applicable), your PAN-Aadhaar linkage will be successfully completed.
Ensuring the link between your PAN and Aadhaar is crucial to maintain financial compliance and avoid penalties. Despite an inoperative PAN card, your salary will continue to be credited to your bank account, as employers are not restricted from making such transfers.