How to Link Aadhaar Card with PAN Card?

If you are a taxpayer, linking your PAN with your Aadhaar card is now mandatory. Failing to comply with the linking requirement within the deadline will make the PAN card inoperative, and you won’t be able to file an ITR (Income Tax Returns). Individuals who make banking transactions of ₹50,000 or more must also link their PAN with their Aadhaar to continue availing of the services. 

As this step is crucial for continuing financial transactions without hindrance, this article is an important read. It explains the process of linking an Aadhaar card with the PAN card and how to check the PAN Aadhaar link status. 

Understanding PAN and Aadhaar Cards

The PAN card is an important document that tracks your financial footprint and helps you meet tax compliance. The PAN card carries a 10-digit alphanumeric number unique to each person. Issued by the Income Tax Department, PAN is a centralised system to store tax-related information about individuals or corporations.

Aadhaar is a 12-digit identification number. It is issued to every Indian citizen, irrespective of age or gender, by the Unique Identification Authority of India (UIDAI). Aadhaar facilitates storing all details about individuals against a single number and accessing them from a government database.

How To Link Aadhaar with PAN To File Income Tax Returns?

Linking an Aadhaar card with the PAN card is mandatory if you must file an ITR unless you are exempted. These include the following:

• Individuals with statuses like Non-resident Indians (NRI), Persons of Indian Origin (PIOs), and Overseas Citizenship of India (CIOs) who are conducting business in India are exempt from linking their PAN with Aadhaar.
• It is also not mandatory for foreign nationals living in India. 
• Residents of Assam, Meghalaya, and Jammu and Kashmir (J&K) are exempt.
• Individuals over 80 are also not required to link their Aadhaar with their PAN.

Apart from the categories mentioned above, PAN Aadhaar linking is mandatory for everyone else.

How to Check if Your Aadhaar Is Linked to Your PAN Card

• Linking your PAN card with your Aadhaar card is necessary to file an ITR. The Income Tax Department will not process your return unless your PAN and Aadhaar are linked. You can link the two identity cards by visiting the e-filing portal of the Income Tax Department. To determine if your Aadhaar and PAN card have been successfully linked, you can follow either of the two methods outlined below:Method 1: Checking Aadhaar-PAN Card Link Status by Logging into the Income Tax Portal
  1. Login to the Income Tax e-filing portal.
  2. Go to the ‘Dashboard’ on the homepage and select the ‘Link Aadhaar Status’ option.
  3. Alternatively, you can access ‘My Profile’ and click on the ‘Link Aadhaar Status’ option.

  If your Aadhaar is successfully linked to your PAN card, you will see your Aadhaar number displayed. If there is no link between your Aadhaar and PAN card, you’ll observe ‘Link Aadhaar Status.’

  In cases where your request to link your Aadhaar with your PAN card is awaiting validation by the Unique Identification Authority of India (UIDAI), you will need to check the status later.

  At the portal, you’ll be prompted to enter your PAN and Aadhaar numbers. Click on ‘View Link Aadhaar Status,’ and the PAN-Aadhaar linking status will be displayed on the screen.

  Method 2: Verifying Aadhaar-PAN Card Link Status Without Logging into the Income Tax Portal

  1. First, navigate to the Income Tax e-filing portal.
  2. Under the ‘Quick Links’ section, select ‘Link Aadhaar Status.’
  3. Enter your ‘PAN number’ and ‘Aadhaar Number’ and click the ‘View Link Aadhaar Status’ button.

  Upon successful validation, you will receive a message indicating the status of your Aadhaar-PAN link. If your Aadhaar is already linked to your PAN card, you will see the message: “Your PAN is already linked to the provided Aadhaar.”

  If your Aadhaar-PAN link is in progress, you’ll see the following message: “Your Aadhaar-PAN linking request has been sent to UIDAI for validation. Please check the status later by clicking on ‘Link Aadhaar Status’ on the Home Page.”

  In the event that your Aadhaar is not linked to your PAN card, the message displayed will be: “PAN not linked with Aadhaar. Please click on ‘Link Aadhaar’ to connect your Aadhaar with PAN.”

Fees for Aadhaar PAN Card Linking

As of the latest update, the IT department has extended the deadline for linking PAN with Aadhaar to June 30, 2023. However, this extension comes with an increased penalty. PAN cardholders who link their PAN with Aadhaar between July 1, 2022 and June 30, 2023, are now required to pay a penalty of ₹1,000.

It’s important to note that failure to link your PAN card with your Aadhaar by June 30, 2023, may result in your PAN card becoming inoperative from July 1, 2023. The primary objective of this linkage, as mandated by the IT department, is to enhance the regulation and reduction of tax evasion.

Importance of Linking PAN Card With Aadhaar Card

Linking your PAN card with your Aadhaar card is crucial for various reasons:

1. Prevent Tax Evasion: Linking both cards enables the government to monitor taxable transactions effectively. Aadhaar serves as proof of identity and residence, allowing the government to track all taxable activities. This helps eliminate tax evasion as the government maintains a comprehensive record of financial transactions subject to taxation.
2. Preventing Multiple PAN Cards: Linking PAN and Aadhaar deters individuals or entities from obtaining multiple PAN cards to evade taxes. With one PAN card for legitimate transactions and another for hidden ones, the government can identify an entity’s true identity through Aadhaar. This ensures that duplicate PAN cards under the same name are detected and dealt with appropriately.

By linking PAN and Aadhaar, the government ensures transparency, reduces tax evasion, and maintains accurate records of financial activities, thereby promoting tax compliance.

What Will Happen to PAN Cards Not Linked With Aadhar?

Effective July 1, 2023, PAN cards that have not been linked with Aadhaar will be rendered inoperative. Additionally, Rule 114AAA of the Income-tax Rules outlines the consequences for individuals whose PAN has expired or become invalid. Such individuals will be held liable for penalties associated with non-compliance in terms of supplying, intimating, or citing their PAN. The repercussions of this inoperative status are as follows:

1. Inoperative PANs will no longer be usable for filing income tax returns.
2. Pending tax refunds will not be issued to PANs that have become inoperative.
3. Unprocessed income tax returns that rely on inoperative PANs cannot be further advanced.
4. Tax liabilities may increase for individuals with inoperative PANs.
5. Pending procedures, particularly those related to erroneous returns, cannot be completed once the PAN card is no longer functional.

These measures are aimed at enforcing compliance with tax regulations and ensuring that individuals properly maintain their PAN-Aadhaar linkages.

Procedure for Linking Aadhaar Card and PAN Card

1. Steps To Link Aadhaar Card and PAN Card – Online

• Visit the e-filing portal of the IT Department
• Go to the Quick Link section on the homepage and click on the Link Aadhaar option
• Enter PAN number 
• Enter your Aadhaar card number 
• Tick the box ‘I have only the Year of Birth mentioned in the Aadhaar card’ if your Aadhaar card contains only your birth year. 
• Click on ‘Link Aadhaar’. You will receive a 6-digit OTP for validation on your registered mobile number.

If you link it after March 31, 2023, you will have to pay a penalty of ₹1,000. If the payment details are not found, a pop-up warning – ‘Payment details not found’ – will appear on the screen. You’ll have to make the payment in advance through the National Securities Depository Limited’s website. 

2. Steps To Link Aadhaar Card and PAN Card – Via SMS

You can link PAN and Aadhaar through SMS by sending a text message from your registered mobile number to 567678 in the format UIDPAN>Space>12-digit Aadhaar>Space>10-digit PAN.

3. Steps To Link Aadhaar Card and PAN Card – Offline

You can also link Aadhaar and PAN by visiting an office of Protean e-Gov Technologies Limited, the PAN service provider. Submit the form along with the necessary documents to initiate the linking process. 

Read More About What Happens to Investments/Trades If PAN & Aadhaar Not Linked?

Final Words

PAN and Aadhaar are both unique identification documents that serve as proof of identity and for registration and verification purposes. The linking process is expected to help prevent tax evasion by improving the monitoring process. Not linking your Aadhaar with your PAN will prevent you from filing an ITR and participating in financial activities. By following the steps above, you can easily link your PAN and Aadhaar.

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