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The Permanent Account Number (PAN) is a special 10-digit alphanumeric number given to every individual, company, or other person by the Income Tax Department. In 1972, the government introduced the concept of the PAN Card and made it statutory under Section 139A of the Income Tax Act 1961. Initially, it was optional, but it became mandatory in 1976. You might wonder why the government introduced such a single identification number instead of other identity proofs.

According to the government, they created the concept of the PAN card, where all finance-related information, such as refunds, taxes, investments, and loans, can be traced. This is to reduce the incorrect income reported by taxpayers. The Income Tax Department also promotes AADHAR-PAN linking to provide greater transparency, as most people have multiple PAN cards. The government conducts AADHAR-PAN campaigns for that purpose. Some people need clarification on whether their PAN is valid or invalid. So, let’s learn how to check your PAN status.

How to check if your PAN is valid or invalid

Now you know that the PAN card is the only place where the government can find all your bank transactions, as they require you to provide your PAN to your bank. In such cases, some people have taken advantage of a loophole and concluded that having multiple PAN cards can hide their unwanted income from the government. If the income is higher than the shown amount, less tax applies. As a result, hidden income mostly turns into black money.

To address these issues, the Government of India mandates linking AADHAR cards and PAN cards. If you don’t know, AADHAR Cards are special documents issued by the Government of India to their citizens, including their complete identity, fingerprints, iris details, and more. However, it needs more financial details. Therefore, the government proposed a plan to link AADHAR with PAN so that they could get a person’s geographical and financial details from one place.

CBDT (Central Board of Direct Taxes) notified in the official gazette that AADHAR data would be linked to PAN data beginning on July 1st, 2017. Initially, banks and similar authorities were ordered to update the PAN Card of account holders who had opened an account with an AADHAR Card or any other identity. Later, the government notified the general public to link AADHAR with PAN on the E-Filing Portal for free by March 31st, 2022. People who left got a second chance to link at a cost of ₹500.

The case is still open, as linking AADHAR with PAN with a $500 charge was until June 30th, 2022. From July 1st to March 31st, 2023, the government raised that link charge to $1,000. To continue the campaign, the government has granted relaxation to link AADHAR-PAN with a ₹1000 charge until June 30th, 2023. But now, as per the CBDT’s latest notification from July 1st, 2023, it will become inoperative if you have not linked AADHAR with PAN before July 1st. Therefore, people want to know their PAN Card’s Valid Status. So, let’s have a look at the steps to check it.

Pro Tip: If you regularly file Income tax returns, then do not panic. Returns are only submitted when your AADHAR is linked with your PAN.

  1. On your phone, visit the E-Filing Portal.
  2. From there, tap on “Verify your PAN.”
  3. Now enter your PAN number, full name, DOB, and mobile number, and tap “Continue.”
  4. Enter the OTP received on the given mobile number on the next page and click “Validate.”
  5. That’s it! Next, you will see your PAN Card’s Validity Status.

In case you find your PAN inoperative, from now on, TDS and TCS will be deducted at a higher rate than usual. Also, such PAN holders can’t get a refund on their returns and cannot get any interest on such a refund. Fortunately, CBDT said an individual whose PAN gets inoperative could make it operative again, but he or she should inform the authority and pay a penalty of ₹1000. After 30 days of informing the authority, your PAN will be operational again. Do note that, apart from this penalty, you must link PAN with AADHAR with an applicable charge.

Frequently Asked Questions

Q1. How can I check if my PAN card status is active or not?

Ans. You have multiple ways to check it. Checking through your E-filing profile is the easiest one, or you can try the above steps too.

Q2. What if my PAN is invalid?

In such a case, TDS and TCS rates will apply to you at a higher rate than usual.

Q3. How long is PAN valid?

Ans. There is only a time limit if you have disobeyed any government regulations.

Q4. How much time does it take to activate a PAN card?

Ans. It has been observed that a fresh PAN application takes two weeks to activate.

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