Pan Aadhaar Linking: How to Link Adhaar and Pan Card?

Discover the simplified process of how to link Aadhar and Pan. Ensure seamless integration in few steps. Also, look into the Aadhar, E-filing, and SMS processes Linking PAN with Aadhaar is a mandatory process for Indian taxpayers to streamline the taxing process and avoid deducting the TDS at double the applicable rate.

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PAN is another identity proof that provides a unique identification number to the tax-paying entity of India. It is a primary key for storing tax-related information provided by the Income Tax Department. Everyone must link Aadhaar with PAN; let us find out how.

Any individual, irrespective of age and gender, residing in India can voluntarily register to obtain an Aadhaar number. The enrolment process is free of cost. The Aadhaar number is a 12-digit unique number issued by the Unique Identification Authority of India (UIDAI) to Indian citizens.

The last date for PAN-Aadhaar linking was 31st May 2024. The government has made it mandatory for all taxpayers to have a PAN card to link it to their Aadhaar card within the deadline. However, a late penalty of ₹1,000 should be paid if applied after the last date.

Step-by-Step Guide to Link Aadhaar to PAN

If you are trying to link your Aadhaar to your PAN, the following step-by-step guide will make your journey easier without confusion.

Go to the e-Filing Portal Home page and click on ‘Link Aadhaar’ in the Quick Links section, or log in to the e-Filing portal and click on ‘Link Aadhaar’ in the Profile section.
Enter your PAN and Aadhaar Number.
Click on ‘Continue’ to pay through e-Pay Tax.
Provide your mobile number to receive an OTP.
After OTP verification, you will be redirected to the e-Pay Tax page.
Click on ‘Proceed’.
Select the relevant Assessment Year and choose ‘Other Receipts’ (500) as the Payment Type, then click ‘Continue’.
After completing the payment, return to the ‘Link Aadhaar’ page.
Once verifying the payment details, click ‘Continue’ to submit your PAN-Aadhaar link request.

You can link the Aadhaar to your PAN card online by logging on to the Income Tax e-filing portal. You can also do it by using SMS services. Read ahead to understand the steps involved in both processes.

Log in to your account

Register yourself on the e-filing portal of Income Tax in case you are not registered.
Log in to the web portal using the user ID.
Enter the password and click “Continue.”
After this, click on “Link Aadhaar.”
Enter your Aadhaar number and press the highlighted button “validate.”
Finally, a pop-up will inform you that your Aadhaar number is linked to your PAN card.

Aadhar link request through SMS

The government has provided another option to link the documents via SMS. You can do it by sending an SMS to either 567678 or 56161.

Verify the Details Entered

Before further steps, double-check your entered details while attempting to link PAN with Aadhaar online. Ensure that the PAN and Aadhaar numbers you provided are accurate and match the information displayed on your PAN card and Aadhaar card, respectively. Even a minor error in the details entered can cause the online linkage process to fail.

Use Correct Formats and Information

Ensure you follow the prescribed formats and guidelines for entering PAN and Aadhaar numbers during the online linkage. PAN numbers should be entered in the format XXXXXXXXX (where X represents alphanumeric characters), while Aadhaar numbers should be entered without spaces or dashes.

Check Connectivity and Browser Compatibility

Internet connectivity or browser compatibility issues can sometimes disrupt the online linkage process. Ensure you have a stable internet connection, and try using a different web browser or device if you encounter problems. Clearing your browser cache and cookies may also help resolve browser-related issues.

Verify OTP and Authentication Process

During the online linkage process, you may be required to verify your identity through a one-time password (OTP) sent to your registered mobile number linked with Aadhaar. Ensure that you enter the OTP correctly and complete the authentication process within the specified time frame. Failure to authenticate within the allotted time may result in aborting the process.

Importance of Linking PAN Card with Aadhaar

The Government of India has made it mandatory for individuals to link their Permanent Account Number (PAN) card with their Aadhaar card, emphasizing the importance of this linkage for various financial and administrative purposes. Here, we delve into the significance of linking the PAN card with Aadhaar and why it is essential for individuals nationwide.

Streamlining Financial Transactions

Linking PAN card with Aadhaar helps streamline financial transactions and enhances transparency in the financial system. It allows regulatory authorities to track and monitor financial activities more efficiently, reducing the risk of tax evasion, money laundering, and other illicit activities.

Preventing Tax Evasion

One of the primary reasons for linking PAN card with an Aadhaar is to prevent tax evasion and ensure compliance with tax laws. By linking the two identification documents, the government can identify individuals underreporting income or engaging in tax avoidance schemes, thereby promoting tax fairness and equity.

Simplifying Income Tax Filing

Linking PAN card with Aadhaar simplifies the income tax filing process for individuals. It enables seamless tax return verification and facilitates faster tax refund processing. Additionally, it reduces the need for manual intervention and documentation, making the tax filing process more efficient and hassle-free.

Avoiding Duplicate PAN Cards

Linking PAN card with Aadhaar helps eliminate the issuance of duplicate PAN cards to individuals. It enables authorities to identify and deactivate multiple PAN cards held by the same person, reducing the risk of identity theft, fraud, and misuse of financial information.

Access to Government Services and Subsidies

A PAN card with Aadhaar linking is essential for accessing various government services, subsidies, and benefits. It serves as a unique identifier for individuals, enabling them to avail of welfare schemes, healthcare services, and financial assistance provided by the government.

What Will Happen to PAN Cards Not Linked with Aadhaar

Despite the deadline extensions and repeated notifications, many individuals have not yet linked their PAN cards with Aadhaar. Let us explore the consequences of not linking PAN with Aadhar card:

Invalidation of PAN Cards

PAN cards not linked with Aadhaar within the specified deadline risk being invalidated or deactivated by the government. Invalidated PAN cards may become unusable for financial transactions, tax filing, and other official purposes, leading to individual inconvenience and compliance issues.

Inability to File Income Tax Returns

Failure to link PAN cards with Aadhaar may result in the inability to file income tax returns electronically. The Income Tax Department has made Aadhaar-PAN linkage mandatory for e-filing of tax returns, and individuals with unlinked PAN cards may face difficulties in fulfilling their tax obligations and may be subject to penalties.

Non-Receipt of Government Benefits and Subsidies

Individuals with unlinked PAN cards may be unable to access government benefits, subsidies, and welfare schemes that require Aadhaar linkage. These could include subsidies on LPG cylinders, government scholarships, pensions, and other social welfare programs, leading to financial hardships for affected individuals.

Disruption in Financial Transactions

Unlinked PAN cards may disrupt financial transactions, especially those involving high-value transactions, investments, property purchases, and banking activities. Financial institutions, regulatory bodies, and government agencies often require Aadhaar-linked PAN cards for verification and compliance, and non-compliance may result in transaction delays or rejections.

Risk of Penalties and Legal Consequences

Individuals who fail to link their PAN cards with Aadhaar within the specified deadline may face penalties, fines, or legal consequences imposed by regulatory authorities. Non-compliance with regulatory mandates related to PAN-Aadhaar linkage could result in punitive actions, including fines levied by the Income Tax Department or other regulatory bodies.

How to Check if Your PAN is Valid or Invalid?

It’s crucial to ensure that your PAN is valid and active to avoid issues during tax filing, financial transactions, or other official processes. Here’s how you can check if your PAN is valid or invalid:

Visit the Income Tax Department’s Official Website

The Income Tax Department of India provides an online facility for individuals to verify the validity of their PAN. Visit the official website of the Income Tax Department at www.incometaxindia.gov.in.

Navigate to the PAN Verification Page

On the Income Tax Department’s website, look for the option related to PAN verification or PAN validation. This option is typically found under the homepage’s ‘Services’ or ‘Quick Links’ section.

Enter Your PAN Details

Once you locate the PAN verification option, click on it to access the PAN verification tool. You will be prompted to enter your PAN details, including your PAN number and full name per the PAN card.

Fill in the Captcha Code

As an additional security measure, you may be required to fill in a captcha code displayed on the screen. Enter the characters shown in the captcha image accurately to proceed with the PAN verification process.

Submit the Verification Request

After entering your PAN details and captcha code, click on the ‘Submit’ or ‘Verify’ button to initiate the verification process. The website will process your request and provide the validation status of your PAN.

Check the Verification Result

Once the verification is completed, the website will display your PAN status as ‘Valid’ or ‘Invalid.’ If your PAN is valid, it is active and recognized by the Income Tax Department. If your PAN is invalid, it may indicate incorrect details, duplication, or deactivation.

Key Takeaways

Linking PAN with Aadhaar is mandatory for all Indian taxpayers.
The process can be completed online via the Income Tax e-filing portal.
An alternative method is linking through SMS by sending UIDPAN<12-digit Aadhaar><10-digit PAN> to 567678 or 56161.
Ensure that details like name, date of birth, and gender match on both PAN and Aadhaar.
Discrepancies in information may require correction before linking.

To Sum Up

The main goal of linking Aadhar with PAN is to remove duplicate entries in the PAN database. This process will allow the government to obtain authentic data from authorized sources, preventing tax evasion and streamlining financial transactions.

As a responsible citizen, you must immediately link your Aadhaar with your PAN card to experience a hassle-free financial journey.

FAQs on How to Link Aadhaar and PAN Card

Why do I get a failed authentication message when I try to link Aadhaar to a PAN card?

Failed authentication messages typically occur due to discrepancies or inaccuracies in the information provided during the linkage process. This could include errors in entering the PAN or Aadhaar number, mismatched details, or issues with the authentication server. Ensure that the details entered are accurate and match the information on your PAN and Aadhaar cards.

How do I link PAN and Aadhaar if there is a mismatch in name or date of birth?

If there is a mismatch in the name or date of birth between your PAN and Aadhaar cards, you can follow these steps to link them:

Update your PAN or Aadhaar details to ensure they match accurately.
Visit the official website of the Income Tax Department or UIDAI to link PAN with Aadhaar.
Use the ‘Update PAN/Aadhaar Details’ option to correct any discrepancies.
Follow the prescribed steps to complete the linkage process with the corrected details.

When is the Aadhaar PAN link process not compulsory?

The Aadhaar-PAN link process is not compulsory in the following scenarios:

Individuals who are not eligible to obtain an Aadhaar card are exempt from linking PAN with Aadhaar.
Non-resident Indians (NRIs) who do not have an Aadhaar card are not required to link PAN with Aadhaar.
Individuals residing in specified states or Union Territories where Aadhaar enrollment has not been implemented are exempt from the linkage requirement.

Can I file my ITR if my PAN and Aadhaar are not linked?

Yes, you can still file your Income Tax Return (ITR) even if your PAN and Aadhaar are not linked. However, linking PAN with Aadhaar is mandatory as per regulatory requirements, and failure to do so may lead to penalties or other consequences. It is advisable to link PAN with Aadhaar at the earliest to ensure compliance with tax laws.

How many days will it take to link PAN with Aadhaar?

The time taken to link PAN with Aadhaar varies depending on various factors, including the mode of linkage and processing time by the authorities. In most cases, the linkage process is completed within a few days of submitting the request online. You can check the status of PAN-Aadhaar linkage online through the official websites of the Income Tax Department or UIDAI.