Link Pan with Aadhaar by May 31 or face higher TDS deduction; how to check status

The income tax department on Tuesday (May 28) asked taxpayers to link PAN with Aadhaar by May 31 or else their tax will be deducted at double the applicable rate.

As per income tax rules, if a Permanent Account Number (PAN) is not linked with biometric Aadhaar, TDS is required to be deducted at double the applicable rate. 

Last month, the income tax department issued a circular stating that no action will be taken for short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31.

"Please link your PAN with Aadhaar before May 31, 2024, if you haven't already, in order to avoid tax deduction at a higher rate," the department posted on X.

How to check if Aadhaar-Pan card link has been done?

1: Visit the Income Tax e-filing portal

Step 2: Under the ‘Quick Links’ heading, click on the ‘Link Aadhaar Status’

Step 3: Enter the ‘PAN number’ and ‘Aadhaar Number’ and click the ‘View Link Aadhaar Status’ button.

If your Aadhar and PAN have been successfully linked it will say:

Your PAN AVXXXXXX7M is already linked to given Aadhaar 22XXXXXXXX74

If your Aadhaar-Pan link is in progress, the following message will appear on the screen - “Your Aadhaar-PAN linking request has been sent to UIDAI for validation. Please check the status later by clicking on ‘Link Aadhaar Status’ link on Home Page.”

But if your Aadhaar is not linked with your Pan card, the following message will appear on the screen - “PAN not linked with Aadhaar. Please click on ‘Link Aadhaar’ to link your Aadhaar with PAN”.

When your Aadhaar is not linked with your PAN card, you can still request for Aadhaar-PAN linking by paying a late penalty of ₹1,000 on the Income Tax website. 

SFTs to be filed by May 31

In a separate post, the I-T department asked reporting entities, including banks, forex dealers, to file SFT by May 31 to avoid penalties.

"The deadline to file SFT (Statement of Specified Financial Transactions) is May 31, 2024. Avoid penalties by filing accurately and on time," the department said.

The reporting entities which are required to file SFT returns with tax authorities include forex dealers, banks, sub-registrar, NBFC, post offices, issuer of bonds/debentures, mutual fund trustees, company paying dividend or buying back shares.

These specified institutions are required to furnish the details of certain financial transactions or any reportable account registered/recorded/maintained by them during the year.

Delay in filing of SFT returns may attract a penalty of up to ₹1,000 for each day of default. Non-filing or filing inaccurate statement may also lead to levy of penalty.

Through SFT, the income tax department keeps a track of high value transactions undertaken by an individual. 

(With inputs from agencies)