Many people across India are suddenly facing trouble because their PAN cards have become inactive under a new government rule. This update mainly affects those who did not link their PAN with Aadhaar within the given deadline. Around 11 crore PAN cards are impacted, which has created confusion and concern, especially among young earners and first-time taxpayers. The good news is that the PAN card is not permanently cancelled. With the correct process, it can be reactivated and used again for banking, tax, and financial work.
1. Reason Behind PAN Card Deactivation
The main reason PAN cards were deactivated is the failure to link Aadhaar with PAN. The government made Aadhaar–PAN linking mandatory to stop duplicate and fake PAN cards. If the linking was not completed before the deadline, the PAN was marked inoperative. This does not mean the PAN number is deleted, but it cannot be used until it is reactivated through proper linking.
2. Who Is Most Affected by This Rule
This rule affects salaried employees, small business owners, students who recently started earning, and people who use PAN for banking or investments. Many people were unaware of the deadline or thought linking was optional. Even those who rarely file income tax returns are affected because PAN is required for bank accounts, mutual funds, and high-value transactions.
3. Problems Faced With an Inactive PAN
When a PAN becomes inactive, you cannot file income tax returns, open a new bank account, apply for a loan, or invest in shares and mutual funds. TDS may also be deducted at a higher rate. For young people starting careers, this can cause delays in salary processing, internships, and financial planning.
4. How to Check PAN Card Status Online
Anyone can easily check whether their PAN is active or inactive. By visiting the official income tax e-filing website and entering PAN and date of birth details, the current status is shown. This step is important before assuming the PAN is blocked. Many people discover the issue only when a bank or employer rejects their PAN.
5. Process to Reactivate PAN Card
To reactivate the PAN, Aadhaar linking must be completed online through the income tax portal. PAN number, Aadhaar number, and OTP verification are required. In some cases, a late fee may be charged. After successful linking, the PAN status is usually restored within a few days. Once active, it works like before without any restrictions.
6. Important Tips to Avoid Future Issues
Always keep personal details the same on PAN and Aadhaar, such as name and date of birth. Link mobile numbers with Aadhaar to receive OTPs easily. Regularly check tax-related updates from official sources. Young users should treat PAN as a long-term identity document and keep it updated to avoid sudden problems.
Conclusion
The deactivation of millions of PAN cards has highlighted how important Aadhaar linking is under the new rules. Although the situation sounds serious, the solution is simple and fully online. By linking Aadhaar correctly and on time, PAN cards can be reactivated without long-term damage. Staying informed helps avoid stress and financial delays.