As per the guidelines of Central Board of Direct taxes or CBDT, it is mandatory for every Indian citizen to link his/her Permanent Account Number (PAN) with their Aadhaar number. This notification was circulated nearly two years ago with deadline details and the fact that non-linking will result in the PAN card being inoperative. The deadline for linking PAN with Aadhaar was March 31, 2022.
The CBDT had earlier set the PAN-Aadhaar linking deadline as February 2020, however, the same was extended to March 31, 2022. This was decided by the central government to address various hardships faced due to the Covid-19 pandemic.
Here is all you need to know about linking PAN and Aadhaar, consequences of not linking and what you should do if you have not yet linked these.
What if you have not linked PAN and Aadhaar yet?
Those who have still not linked PAN with Aadhaar within the deadline of March 31, their PAN will become inoperative and have to face many other consequences.
- A new section 234H has been added in the Income Tax Act, 1961. This section allows the government authorities to charge a penalty on individuals if the mentioned due dates are not followed. The maximum penalty, however, can be Rs. 1,000.
- If an individual has not linked PAN with Aadhaar, he/she cannot carry out any financial transactions that require these documents. It is important to note that mentioning the PAN card is mandatory in most financial transactions. Therefore, if the PAN is inoperative, no financial transaction can be completed. For instance, one cannot open a bank account, invest in any real estate, etc., if the PAN is inoperative.
If you are planning to link your PAN and Aadhaar now, the government will levy a fine while initiating the linking, since the deadline for the same has passed.
How to link PAN and Aadhaar?
There are two main ways of linking PAN with Aadhaar online. One route is to link through SMS and the other mode is through the Income-Tax Department’s website. Here are the details of both the methods:
- Linking PAN-Aadhaar via SMS
Here are the steps for linking PAN and Aadhaar through SMS route:
- Go to the SMS or text message app on your smartphone
- Type the Aadhaar and PAN number using this format – UIDPAN
- After validating the entered number and characters, send it to ‘567678’ or ‘56161’.
Your PAN and Aadhaar will be linked after the message is sent successfully.
- Linking PAN-Aadhaar via IT department website
Here is how you can go about linking PAN-Aadhaar through the Income tax department’s official website:
- Already registered as user on Income tax website:
If you have been filing your income tax returns, you may have likely linked your PAN with Aadhaar. You can check the same in the previously filed ITR for an assessment year. This is usually done by the income tax department once details of both PAN and Aadhaar have already been mentioned by the assessee while filing returns.
To check whether the PAN and Aadhaar are already linked, you can:
- Visit the income tax e-filing website at – www.incometaxindiaefiling.gov.in
- Once on the website, login using PAN as User ID and password
- Once logged in to your account, go to ‘Profile Settings’ by navigating the cursor to your name
- If PAN-Aadhaar are linked, your profile will show the Aadhaar number as linked
- For non-registered users
If you have not registered on the IT department e-filling website or don’t wish to register yourself, you can still link your PAN and Aadhaar using a hyperlink given on the homepage of the income tax portal at www.incometax.gov.in.
- On this link, click on ‘Link Aadhaar’
- Once a new form appears, you must enter details like PAN, Aadhaar number, mobile number and full name as per Aadhaar
- In case the Aadhaar card carries only the year of birth, click on the option – ‘I have only year of birth on Aadhaar card’
- It is also important to agree on ‘validate Aadhaar details’ before clicking on ‘Link Aadhaar’
- Upon successfully submitting, a message will be displayed showing PAN has been successfully linked to Aadhaar
Conclusion
Under the current laws stated by the central government, it is mandatory to link PAN with Aadhaar number. Aadhaar number has to be quoted mandatorily in many aspects like filing income tax return (ITR), new PAN application and also while availing benefits from the government like pension, LPG subsidy, etc. Therefore, if not done already, link your PAN and Aadhaar number today to avoid any hindrances in future financial transactions.
FAQs
As per Section 139AA of the Income Tax Act, every individual who has a permanent account number (PAN) as of July 1, 2017 and is eligible to get an Aadhaar number must mandatorily link their Aadhaar and PAN within the deadline of March 1, 2022. Failure to do so will result in penalties being charged by the government.
Aadhaar-PAN linking is presently not mandatory for individuals residing in the Assam, Jammu and Kashmir, and Meghalaya. An individual who is a non-resident as per the Income Tax Act, 1961 or is above eighty years of age during the previous year or is not an Indian citizen also need not link PAN and Aadhaar.
Your PAN will be inoperative in case you have not linked your Aadhaar and PAN within the deadline of March 31, 2022. In case your PAN is inoperative, you must link PAN and Aadhaar using the e-Filing portal or SMS route to activate PAN again.
Yes, there is a manual way of linking PAN and Aadhaar if you are not able to do it online. For this, you can visit a PAN service provider like NSDL or UTIITSL. You must fill in the form ‘Annexure-I’ and furnish supporting documents including a copy of PAN card and Aadhaar card to get them linked.
The OTP for linking PAN and Aadhaar is sent on the applicant’s registered mobile number.