PAN Card Active Status: Steps to Check Whether it is Active or Inactive

A PAN card is a necessary document for a number of financial operations, including issuing a debit or credit card, opening a bank account, filing income tax returns, and receiving income tax refunds. However, for a number of reasons, the Indian government recently deactivated a huge amount of PAN cards. This article offers a thorough explanation of how to determine whether your PAN card is active or inactive.

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Table of Contents

Prerequisites Required to check PAN card status

Steps to Check PAN Card Status

Reasons for PAN Card Deactivation

Consequences of an Inoperative PAN Card

What to Do if Your PAN Card is Inactive

Steps to Link PAN-Aadhaar

Steps to Check the Status of PAN-Aadhaar Linking

Conclusion

Most Asked Questions

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Prerequisites Required to check PAN card status

Individuals will require the following in order to verify the status of their PAN card: 

• PAN number 

• A working mobile number

Steps to Check PAN Card Status

The procedures to confirm your PAN card or determine if it is active or inactive are listed below: 

Step 1: Go to the website for income tax e-filing. 

Step 2: On the homepage option, under the "Quick Links" section, click on the "Verify PAN Status" option.

Step 3: Click "Continue" after entering your name, date of birth, PAN number, and cellphone number.

Step 4: Click "Validate" after entering the OTP that was received to your mobile number. 

Step 5: The status of your PAN card will be depicted. 

Reasons for PAN Card Deactivation

There are several reasons why your PAN card might be removed. One of the primary reasons for PAN card revocation is missing the PAN-Aadhaar linking date. The CBDT notification states that everyone (except from those in the exempt category) must link their PAN with Aadhaar by June 30, 2023. The PAN card will not work if it is not linked to Aadhaar. To find out if their PAN is valid or not, people can visit the Income Tax website. The Income Tax Department will deactivate a person's PAN cards if they have more than one. Since PAN cards are provided to people who are not real or who have a false identity, the Income Tax Department will deactivate those that are found to be fraudulent. 

Consequences of an Inoperative PAN Card

The stated financial transactions are not possible if your PAN card is not working: 

1. Opening an account with a cooperative bank or banking firm (apart from time deposits and basic savings bank deposit accounts)

2. Making a credit and debit card application

3. Creating a Demat account with a custodian, securities participant, or depository

4.  Cash payments beyond Rs. 50,000 for the following uses: 

5. to a hotel or restaurant in lieu of payment

6. for international travel or to cover the cost of buying foreign currency 

7. to a mutual fund in order to acquire its units 

8. to an organisation or business in order to purchase bonds or debentures that they have issued 

9. to buy bonds from the Reserve Bank of India (RBI) 

10. Cash deposits with a banking institution or cooperative bank summing up to more than Rs. 50,000 on a single day 

11. Making a cash payment of more than Rs. 50,000 in a single day to buy bank drafts, banker's checks, or pay orders from a cooperative bank or banking firm 

12. Establishing a time deposit with a bank, post office, cooperative bank, NBFC, or Nidhi registered under the Companies Act, 2013 that exceeds Rs. 50,000 or totals more than Rs. 5 lakh during a fiscal year

13. Payment to a banking firm, co-operative bank, or other organisation or business in cash, bank draft, pay order, or banker's check totalling more than Rs. 50,000 throughout a fiscal year for one or more prepaid payment instruments 

14. Paying an insurer a sum of money totalling more than Rs. 50,000 for life insurance during a fiscal year 

15. The acquisition or sale of securities (apart from shares) for more than Rs. 1 lakh in a single transaction 

16. The purchase or sale of shares of a business that isn't listed on any reputable stock market for more than Rs. 1 lakh each

When the PAN is not in use, the following financial transactions will lead to a higher tax deduction: 

• Purchasing or selling a car or other type of vehicle that is not two-wheeled 

• The purchase or sale of real estate valued higher than Rs. 10 lakh, as determined by a stamp valuation authority 

• Buying or selling items or services for higher than Rs. 2 lakh on every transaction

What to Do if Your PAN Card is Inactive

You must write a letter to your jurisdictional Assessing Officer (AO) in the Income Tax Department asking for the activation of your PAN card if it has been deactivated by the department for a cause other than failing to link it to your Aadhaar card. You should not forget to include the following paperwork with the letter:

• A duplicate copy of the PAN which you have used to submit your income tax returns 

• Indemnity Bond for the Income Tax Department

• A duplicate copy of the income tax returns from the inactive PAN number that were filed throughout the preceding three years 

The department will activate your PAN card within 15 to 30 days of receiving your request letter and confirming that it is authentic.

Steps to Link PAN-Aadhaar

If your PAN is inactive because it has not been associated with Aadhaar, you can receive it back online by applying to link PAN and Aadhaar and paying a penalty of Rs. 1,000. However, 30 days after submitting an application for a PAN-Aadhaar connection, the PAN will become operational. The processes to connect PAN and Aadhaar are as follows:

Step 1: Visit the income tax e-filing website. 

Step 2: From the "Quick Links" area of the homepage, select the "e-Pay Tax" icon. 

Step 3: After entering your cell number and "PAN," the next thing you should do is to click "Continue." 

Step 4: After entering the OTP, select "Continue". 

Step 5: Click "Proceed" after selecting the "Income Tax" icon. 

Step 6: After selecting "2023-24" as the assessment year and "Other Receipts (500)" as the payment type (minor head), click "Continue" to pay the fee. 

Step 7: After paying the fine, navigate to the "Link Aadhaar" icon located beneath the "Quick Links" banner on the webpage. 

Step 8: After entering your Aadhaar number and PAN, click "Validate". Enter your name and mobile number, followed by clicking the "Link Aadhaar" option. 

Step 9: After entering the OTP, choose "Validate". The request for a PAN-Aadhaar connection will be sent to the UIDAI.

Steps to Check the Status of PAN-Aadhaar Linking

By taking the actions listed below, you can determine whether your PAN is connected to Aadhaar: 

Step 1: Visit the income tax e-filing website. 

Step 2: Select the "Link Aadhaar Status" option located beneath the "Quick Links" banner on the homepage. 

Step 3: After entering your Aadhaar card number and PAN, choose "View Link Aadhaar Status". 

Step 4: The PAN-Aadhaar link status will be displayed on the screen.

The PAN card may not be functioning for a number of reasons. You can check the status of your PAN card on the Income Tax e-filing website to see if it is active. If your PAN is inactive or inoperative due to not linking your PAN and Aadhaar card, you will need to pay the penalty amount and then submit a request to link your PAN and Aadhaar. For 30 days, the PAN card would not be usable. However, if your PAN card isn't functioning for any other reason, contact the local jurisdictional AO at the Income Tax Department and request that they activate it. 

Conclusion

In India, the PAN card is among the most essential documents. Opening a bank account, paying taxes, getting a credit or debit card, and investing in mutual funds or the stock market are just a few of the financial operations that require it. Your PAN card should, therefore, be active at all times. However, there are various reasons why it may be deactivated. Knowing when this happens will enable you to take the requisite measures to deal with the issue and get your PAN activated again.

FAQ

Q1. How can I verify if my PAN card is active?

To check if your PAN card is active, go to the Income Tax e-filing website and select the "Verify PAN Status" option.

Q2. What do I have to do to make my dormant PAN card active again?

If your PAN has been deactivated, you must take the following actions: To activate your PAN, you must include the following paperwork in the letter you send to the Income Tax Department's jurisdictional AO: The indemnity bond is given to the Department of Income Tax. 

Q3. Can my PAN card be renewed?

For a period of one year, the online PAN verification capability is available; however, it must be renewed annually for Rs. 12,000 (plus GST, if applicable). 

Q4. Are PAN cards voidable?

Once you obtain a PAN card, it is good for life. There is no need to renew it. Only in the event of the cardholder's death can a PAN card be cancelled. Therefore, once a PAN card is issued, it is valid for the rest of your life. 

Q5. How long will it take for my PAN card to become active?

It takes around seven to thirty days for your PAN card to become active once you submit an application to link it to your Aadhaar card.

Q6. Is it possible to apply for a new PAN and cancel the existing one? 

No, a PAN application cannot be withdrawn and a new one submitted. Only in cases where an additional PAN was inadvertently given to them may an assessee file an application to surrender or modify it. 

Q7. How do I check if my PAN is linked with an Aadhaar card?

You can visit the Income Tax e-filing website, click on the "Link Aadhaar Status" option, and enter the necessary information to see if your PAN card and Aadhaar card are linked.

Q8. What should I do if my PAN card is inactive?

If your PAN card remains inactive due to your Aadhaar card not being linked to your PAN card, you will need to pay the penalty for linking your Aadhaar card with your PAN card first, and then apply to link your PAN and Aadhaar on the Income Tax e-filing website. You must first pay the penalty for integrating your Aadhaar card with your PAN card if your Aadhaar card isn't linked to your PAN card, making it inactive. Applying to link your Aadhaar and PAN on the Income Tax e-filing website is the next step.