PAN card will become inoperative from 01st July 2023 if PAN holders do not link it with their Aadhaar card. The IT department has mandated linking PAN-Aadhaar to regulate and curb tax evasion.
As per section 206AA, a taxpayer who has been entitled to get any sum (Income) on which TDS applicable, needs to quote the PAN to the payer who is responsible for paying such a sum of income after deducting TDS. The failure of the PAN quotation would result in the TDS deduction at a higher rate. Now in the case where PAN becomes inoperative it would be treated the same and TDS would be deducted at the highest rate of 20%.
As TDS deductee (Person who receive income), How to check whether PAN is linked with Aadhaar
The Income Tax Department has facilitated a functionality to check whether Aadhaar is linked with PAN. Taxpayers can login to incometax.gov.in. After doing login, click on profile option and check status (operative/inoperative) under PAN.
As TDS Deductor/TCS Collector How to check whether PAN is Linked with Aadhar
The Income Tax Department has facilitated a functionality to check whether Aadhaar is linked with PAN. It is the same link wherein you can check whether an Aadhaar PAN is linked or not and whether the person is a specified person u/s 206AB & 206CCA (i.e. non-income tax return filer). This functionality is made available through the Reporting Portal of Income-tax Department (https://report.insight.gov.in). This functionality is available to the Principal Officers of the registered TAN at the home page of Reporting Portal (After Login).
Following steps to be followed on reporting insight portal,
Step-1:- Go to Reporting Portal at URL https://report.insight.gov.in and register person responsible for deducting/collecting Tax
Step-2:- After registration, login to reporting insight portal and clicking Compliance Check for Section 206AB & 206CCA at home page, the compliance check functionality page appears.
Step-3:- We can check whether PAN is operating or not through following two modes,
– PAN Search: To verify for single PAN
– Bulk Search: To verify for PANs in bulk