Linking of Aadhaar with PAN (Permanent Account Number) is a compulsory requirement stated in the Income Tax Act 1961. The process has been made simple and hassle-free with the update of the income tax portal. Wish to know how to proceed? Read on!
What are the consequences of not linking Aadhaar to a PAN Card?
Linking one’s Aadhaar to PAN was an option earlier, but with the new mandate of law, the non-linkage of the two will result in the deactivation of Aadhar and your PAN going inoperative. The deadline for linking the two is 30 Jun, 2023.
Without an operative PAN, you will not be able to carry out any of the following activities
- If you don’t link your Aadhaar and PAN, your financial transactions can come to a halt. You won’t be able to open any bank accounts, investment accounts, buy or sell a property, and the list goes on. However, any transactions already carried out with the PAN will not be affected.
- Without an operative PAN, you will not be able to file your ITR. This means your refund will get stuck. Other penal consequences might also be there due to the non-filing of ITR.
- E-verification of ITR with the Aadhaar OTP option will also not be possible.
- By inserting Section 234H in the Income Tax Act, the Govt has made it possible to levy a penalty of up to Rs 1000 for not linking Aadhaar with PAN
What are the benefits of linking Aadhaar to PAN Card?
By linking one’s Aadhar and PAN number, there are numerous advantages to the government and individuals alike. They are as follows –
- The IT Department can detect any form of tax evasion.
- The chances of the PAN number getting cancelled are made next to none.
- The Aadhar-PAN linkage will eliminate the possibility of an individual having more than one PAN Card and ensure that there is only a single PAN number per individual.
- The process of filing income tax becomes easier with the IT department not asking for separate proof for having filed one’s income tax returns.
- Additionally, one can get a clear picture of one’s tax payments over a period with the use of this facility provided.
How can you link your Aadhaar and PAN?
There are four ways in which you could link your PAN and Aadhaar. They are
- Through the e-Filing Income Tax Website (Without login)
- Through the e-filing Income Tax website (With login)
- Linking through SMS
- Link Aadhar-PAN manually by filling up a form (Annexure-1)
What are the prerequisites for this linking?
One must have a valid and active PAN, an Aadhar number, and a valid mobile number prior to carrying out their Aadhaar-Pan linkage.
What is the procedure for linking Aadhaar and PAN?
Via the E-filing Portal
- Without logging on to the Income Tax E-filing portal
- Firstly, one must click on the “Link Aadhar” option on the e-filing homepage, which is placed under the head “Our Services”.
- Thereafter, he or she must enter all the details requested without fail. Click on the check boxes against certain terms and conditions and then click on the “Link Aadhar” button.
- Immediately, a 6 digit OTP will be sent to the registered mobile number, which needs to be entered for verification.
- This will either be auto read or one must manually enter it and click on the “Validate” button.
- It is important to know that the OTP will be valid for a period of only 15 minutes and must be entered within 3 attempts. The countdown timer on the screen will indicate when the OTP will expire.
- In case the OTP is not sent, then attempt again, by clicking on the “Resend OTP” button.
- On successfully entering and submitting the OTP, the linking is complete.
- If you wish to use the service post logging in, then –
- Post-logging into the e-filing portal
- Enter user ID and password and click on the “Continue” button.
- On the e-filing dashboard, one will then find an option that reads – “Link Aadhar to PAN” with a corresponding “link” option next to it. Click on the same.
- Alternatively, the link Aadhar option can be found as a drop down in the “my Profile” menu on the top right-hand corner of the page.
- Thereafter, enter all the details, starting from name, date of birth, gender, Aadhar number, as requested without fail. Click on the check boxes against certain terms and conditions and then click on the “Link Aadhar” button. This marks the completion of the linking process.
Via the SMS Facility
In order to link one’s Aadhar to PAN, he or she must type UIDPAN < 12-digit Aadhaar number > < 10-digit Permanent Account Number > and send it to 567678 or 56161 from one’s registered mobile number.
Link Aadhaar-PAN manually by filing up a Form (Annexure 1)
CBDT has allowed individuals to use the manual method for linking Aadhaar and PAN. this method can be used if there is any mismatch in the data of PAN & Aadhaar and a person is not able to link the two by online or SMS methods.
To manually link your Aadhaar and PAN you are required to visit service centres of PAN, NSDL or UTIITSL with copies of your PAN and Aadhaar to fill up Annexure-1. You will be required to pay the prescribed fee if any correction is required in Aadhaar or PAN. The charges for PAN correction is Rs 110 and for Aadhaar correction are Rs 25.
How do you know if your Aadhaar and PAN are linked?
One can view Link Aadhar Status Pre-login by checking into the “Link Aadhar status” under the “Our Services” head. On entering the PAN and Aadhar number, one must click on the view link status.
One can view Link Aadhar Status Post-login, by locating the “Link Aadhar to PAN” and select the “Link Aadhar Status” tab present next to it. The Link Aadhar status will then be displayed.
Frequently Asked Questions
- Are there any exceptions for linking PAN and Aadhar?
One is exempt from the PAN-Aadhaar linkage mandate if –
- He or she is an Non Resident Indian ( NRI),
- He or she is a resident of Assam, Meghalaya, Jammu and Kashmir,
- He or she is a foreign national residing in India,
- He or she is a senior citizen who is more than 80 years of age.
- Can I e-file my Income tax returns without having my PAN card linked to my Aadhar Card?
Income tax returns will not be processed unless the Aadhar number is linked with the PAN number.
- What details must be cross referenced between Aadhar and PAN card?
One has to check his or her name, date of birth, gender, address and photo identity while connecting PAN with Aadhar.
- What must be done in case one cannot link his or her PAN with an Aadhar number?
This problem will usually occur if there is a mismatch in the details provided. So, make the necessary corrections before proceeding. The IT department itself has started the online facility for correction of errors in names and other information present on the Aadhaar and PAN card.
- I applied for an Aadhaar number and I have my Aadhaar Enrollment number with me. Can I use my Aadhaar Enrollment number to e-file my Income tax return online?
You can use the Aadhaar Enrollment ID number that is provided on Acknowledgement/ EID slip that is given from the Aadhaar enrollment centre for filing the Income Tax return.
- Does one have to register with the portal to avail the service of linking one’s Aadhar card?
This service is available to all e-filing users of the portal, irrespective of whether they are registered or unregistered.
