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Aadhaar-PAN Link: PAN (Permanent Account Number) and Aadhaar are both important identification documents for individuals in India. PAN is used for tax purposes, while Aadhaar is used for a variety of other purposes including social welfare services. Linking PAN and Aadhaar is a mandatory requirement for all taxpayers, except a few exemptions.
What Is A PAN Number?
PAN stands for Permanent Account Number. It is a unique 10-digit alphanumeric code assigned by the Income Tax Department to individuals, companies, and other entities that pay taxes in India.
PAN is a mandatory requirement for various financial transactions, including opening a bank account, filing income tax returns, making investments, and buying or selling immovable property.
The PAN card serves as a valid proof of identity and helps the government track financial transactions of individuals and businesses for taxation purposes.
What Is Aadhaar?
In India, Aadhaar is a 12-digit unique identification number that is issued by the Unique Identification Authority of India (UIDAI) to residents of India. It is based on the biometric and demographic data of an individual, including fingerprints, iris scans, and a photograph.
Linking of PAN With Aadhaar
The Finance Act, 2017 had inserted a new section 139AA in the Income Tax Act, 1961, requiring every person who is eligible to obtain Aadhaar to quote his/her Aadhaar number while applying for PAN or furnishing return of income with effect from July 1, 2017.
If you are yet to link the PAN card with Aadhaar, then you need to link them by June 30, 2023. Otherwise, you will not be able to use the same from July 1, 2023.
Once the PAN card holders miss this deadline, the 10-digit unique alphanumeric number will become inoperative.
Is Linking PAN And Aadhaar Mandatory?
Yes, linking your PAN and Aadhaar is mandatory in India. The government has made it compulsory for individuals to link their PAN and Aadhaar as part of its efforts to curb tax evasion and improve compliance.
Who Needs To Link Aadhaar and PAN?
According to the Section 139AA of the Income Tax Act, every individual who has been allotted a PAN as on the 1st day of July, 2017, and who is eligible to obtain an Aadhaar number, shall intimate his Aadhaar number in the prescribed form and manner.
In other words, such persons have to mandatorily link their Aadhaar and PAN before the prescribed date (March 31, 2022 without fee payment and June 30, 2023 with prescribed fee payment.
Fees For PAN Aadhaar Link
The prescribed fee was Rs 500 till June 30, 2022 and Rs 1000 is being charged from July 01, 2022 to June 30, 2023 in a single challan which will be applicable before submission of Aadhaar-PAN linkage request on e-filing portal.
PAN-Aadhaar Link Last Date
The last date for linking PAN with Aadhaar has been extended to June 30, 2023. The Central Board of Direct Taxes (CBDT) announced the extension on March 30, 2023.
Earlier, the deadline for linking PAN with Aadhaar was March 31, 2023. However, the government extended the deadline by three months to provide more time to taxpayers to link their PAN with Aadhaar.
Who Does Not Require PAN-Aadhaar Link?
The ‘exempt category’, according to a notification issued by the Union Finance Ministry in May 2017, are those individuals;
1. Residing in the States of Assam, Meghalaya and UT of Jammu and Kashmir
2. A non-resident as per the Income-tax Act, 1961;
3. Of the age of eighty years or more at any time during the previous year;
4. Not a citizen of India.
Consequences Of Not Linking PAN And Aadhaar
From July 01, 2023, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative and the consequences during the period that PAN remains inoperative will be as follows:
– No refund shall be made against such PANs
– Interest shall not be payable on such refund for the period during which PAN remains inoperative; and
– Tax will be required to be deducted at a higher rate as PAN becomes inoperative. TDS and TCS shall be deducted /collected at a higher rate, as provided in the Act.
– The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs.1,000.
– If PAN becomes inoperative, you will not be able to furnish, intimate or quote your PAN and would be liable to all the consequences for such failure.
– You will not be able to file return using the inoperative PAN
– Pending refunds cannot be issued to inoperative PANs
– Pending proceedings as in the case of defective returns cannot be completed once the PAN is inoperative
How To Know If Your PAN Is Linked With Aadhaar?
Step 1: View PAN-Aadhaar link status without signing in on www.incometax.gov.in/iec/foportal/
Step 2: On the e-Filing Portal homepage, go to ‘Quick Links’ and click on Link Aadhaar Status.
Step 3: Enter your PAN and Aadhaar Number, and click on View Link Aadhaar Status.
On successful validation, a message will be displayed regarding your Link Aadhaar Status.
If the Aadhaar-Pan link is in progress, then the below message will appear on the screen;
Your Aadhaar-PAN linking request has been sent to UIDAI for validation. Please check the status later by clicking on ‘Link Aadhaar Status’ link on Home Page
If the Aadhaar PAN linking is successful, then it will display the following message;
You PAN is already linked to given Aadhaar
How To Link Aadhaar and PAN?
Both registered and unregistered users can link their Aadhaar and PAN on the e-Filing portal of Income Tax Department, in both pre log in and post login mode.
Online linking: You can link your PAN with Aadhaar online by visiting the Income Tax e-filing website (www.incometaxindiaefiling.gov.in).
SMS linking: You can also link your PAN with Aadhaar by sending an SMS to 567678 or 56161 in the following format: UIDPAN < SPACE > < 12-digit Aadhaar number > < SPACE > < 10-digit PAN number > .
Offline linking: You can also link your PAN with Aadhaar offline by visiting the nearest PAN Service Centre or Aadhaar Seva Kendra.
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