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The deadline for linking Aadhaar with PAN has been extended to 30 June 2023. Non-compliance on this will result in the PAN will become inoperative from April 1, 2023. Also, individuals will have to pay a fine of Rs 1000 as a late fee for linking their PAN with their Aadhaar.
PAN card is accepted as valid identity proof all over India. A PAN card is required for most financial transactions, and the IT department tracks your transaction via it. On the other hand Aadhaar holds all the information of an individual along with their biometric verification.
What is the process to link your PAN to your Aadhaar?
There are two main steps for Linking Aadhaar with PAN:
1. Payment of applicable fee on e-filing Portal either using “e-pay Tax Service” or on Protean (NSDL) Portal under major head (021) and minor head (500).
Click on Link Aadhaar in Quick Links section on e-filing website. Alternatively, login to e-filing portal and Click on Link Aadhar in Profile Section.
Enter your PAN and Aadhaar Number
Continue to Pay Through e-Pay Tax.
Enter your PAN, Confirm PAN and any Mobile number to receive OTP
After OTP veriification, you will be redirected to e-Pay Tax page. Click on Income Tax File.
Select AY (2023-24) and Type of payments as Other Receipts (500) and Continue.
Now, challan will be generated. On the next screen you have to select the mode of payment after selecting the mode of payment you will be re-directed to the Bank website where you can make the payment. In case, if you have an account in the Bank which is not Authorised for payment through “e-Pay Tax”, Protean (NSDL) Portal is the other option to proceed with payment. The process is as follows:-
Click on Link Aadhaar in Quick Links section on the e-filing portal.
Enter your PAN and Aadhaar Number.
Click on Continue to Pay Through e-Pay Tax
Click on hyperlink given on e-Pay tax page to redirect to Protean (NSDL) Portal
You will be redirected to Protean (NSDL) Portal. Click Proceed under Challan No./ITNS 280
Select Tax applicable as 0021 and Type of Payment as 500.
Provide Assessment Year as 2023-24 and other mandatory details and click on Proceed.
2. Submit the Aadhaar-PAN link request
There are three ways for the linking of Aadhaar-PAN:-
- Linking without log-in to the Income Tax website
- Linking after log-in the Income Tax website
- Linking of Aadhaar Number and PAN via SMS
Method 1: Linking Aadhar Card with PAN card without logging in to the income tax website
Visit the income tax government website , under the quick links you will get the option to link your Aadhaar with PAN.
Enter PAN and Aadhaar number and click ‘Validate’.
the 6-digit OTP received on your mobile number and validate.
Request for the link of Aadhaar has been submitted successfully; now you can check the Aadhaar-PAN link status.
If your PAN and Aadhaar is already liked, you will get the pop-up on the screen. Here you can lodge a grievance or contact the e-Filing Helpdesk to un-link your Aadhaar and PAN if your PAN is linked with another Aadhaar.
After entering PAN and Aadhaar, if you haven't linked Aadhaar-PAN, the pop-up message will be ” Payments details not found” click on Continue to Pay Through e-Pay Tax for the payment of fee as payment of fee is the pre-requisite to submit the Aadhaar PAN link request. The process is shared above.
Method 2: Linking Aadhaar Card with PAN card After logging in to the income tax website
In order to link Aadhaar with PAN card , all you have to do is follow these 5 simple steps:-
Visit the income tax website, and click on the login tab.
Fill in your details to login into the portal.
On the income tax dashboard, under the Link Aadhaar to PAN option, click on the 'Link’ button.
Enter the Aadhar and click on validate.
Method 3: Link Your Aadhar Card with PAN card via SMS
The income tax department has started SMS-based Aadhaar to PAN linking facilities to make it easier for the residents to link their IDs. It can be done by sending an SMS to either 567678 or 56161. However, you need to use your registered mobile number.
Type UIDPAN <Space><12 Digit Aadhaar No.><Space><10 Digit PAN> and send a SMS to 567678 or 56161
For Ex- UIDPAN 111122223333 AAAPS1111A
How To Check PAN And Aadhaar Link Status
To check whether your Aadhaar and PAN cards are linked or not, follow these steps:
On the income tax portal, head on to the “our services” tab.
Click on the “Link Aadhaar” card displayed on the page.
You will see a window where you need to fill in your PAN and Aadhaar card numbers.
A Pop-up will appear showing the status of your cards.
What are the consequences of not linking your Aadhaar with PAN card?
- Filing an Income Tax Return (ITR) may become challenging if the PAN and Aadhaar cards are not linked.
- Pending Refunds will not be issued, and Pending ITRs will not be processed with inoperative PAN.
- Income Tax will be deducted at a higher rate if PAN becomes invalid due to non-linking.
- Pending proceedings, as in the case of Defective Returns, cannot be completed with an inoperative PAN.
- Suppose the PAN Card and the Aadhaar Card are not linked. In that case, it may cause difficulties when accessing certain government services such as obtaining subsidies, applying for a passport, opening a bank account, etc.
- Obtaining a new PAN Card may be difficult if not linked to the Aadhaar Card. The government has also made it mandatory to include the Aadhaar Card number when applying for a new PAN.
- If the PAN Card and the Aadhaar Card are not linked, you may be subject to a penalty of up to Rs. 10,000/-
What are the benefits of Aadhaar and PAN linking?
Aadhaar-PAN linking is required for legal aspects and provides benefits like:-
- Aadhaar Card is an important document for all transactions. Linking Aadhaar and PAN provides an audit trail of all transactions to the Income tax department.
- Starting next year, ITR filing will not be allowed until your Aadhaar-PAN is linked.
- Filing ITR will be an easy process as it would eliminate the need for actions like submitting receipts to the IT department or e-signature. These actions will be automatically done using Aadhaar e-verification.
- Aadhaar- PAN linking can help in preventing the cancellation of the latter.
- Through the use of an Aadhaar Card, the requirement for other documents has been reduced to a large extent.
- Aadhaar cards also serve the purpose of identity proof and address proof. It has made this document of great importance for individuals.
- With the introduction of aadhaar, tracking transactions has become easier and more effective. Aadhaar-based authentication has become a norm now.
- It is also useful for tracking tax evaders. Aadhaar-PAN linking solved the problem of an individual having multiple PAN cards and reduced the possibility of fraudulent activities.