PAN-Aadhaar Link: The good news is that your PAN can be reactivated. This requires linking your Aadhaar to your PAN. However, a penalty of ₹1,000 will be levied. Once the prescribed procedure is completed, the PAN becomes active again.

PAN-Aadhaar Link: For those who did not link their Aadhaar to their PAN by December 31, their PAN has become inactive from January 1. This means that most transactions requiring a PAN will not be possible for now. Until the PAN is reactivated, financial and government transactions will be disrupted.

What's the relief?

The good news is that the PAN can be reactivated. This requires linking your Aadhaar to your PAN. However, a penalty of ₹1,000 will be levied. Once the prescribed procedure is completed, the PAN becomes active again. Due to an inactive PAN, income tax returns cannot be filed, and tax refunds may be delayed. Additionally, opening a new bank account or a demat account will not be possible.

Large purchases, large cash deposits, and some banking services may also be affected. Applying for a debit or credit card, depositing cash in a bank, or obtaining a bank draft may also become difficult. PAN and Aadhaar are essential documents for many government services. Obtaining a passport, opening a bank account, or availing of government subsidies may become problematic if your PAN is inactive. If your PAN card is lost or damaged, obtaining a new PAN will also not be easy.

How to reactivate your PAN?

To reactivate your PAN, you need to log in to the Income Tax Department's e-filing website. After logging in, go to the 'My Profile' section, select the 'Link Aadhaar' option, and enter your PAN and Aadhaar numbers. You will then have to pay a penalty of ₹1,000 online. Once the payment is successful, the PAN will be reactivated within a few days. Currently, there is no last date specified for reactivating the PAN. However, the sooner this process is completed, the sooner essential daily activities can return to normal. Those who missed the December 31st deadline should complete the Aadhaar-PAN linking process without delay. This will help avoid long-term financial and administrative problems.

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