It is vital to link the Aadhaar with the Permanent Account Number (PAN). The income tax return will be rejected if the Aadhaar is not connected to the PAN. If users want to do a money transfer of more than Rs. 50,000, they must link their Aadhaar and PAN cards.
Linking the PAN card with the Aadhar card is simple, and there are many ways to do so. Learn how to connect the cards online in this post.
Deadline for Aadhaar-PAN Linking
According to the Central Board of Direct Taxes (CBDT), the deadline for taxpayers to link their Aadhaar and PAN card is extended from March 31, 2023 to June 30, 2023. It is important to link the Aadhaar and PAN card as it will help curb tax invasion and failing to link the documents will ensure the PAN card becomes inoperative.
The CBDT also declared that not adhering to the deadline, and not linking the Aadhaar to the PAN card will result in penal action from July 01, 2023. This includes:
- No tax refund will be allowed against PAN cards that aren’t linked to the Aadhaar card.
- If the taxpayer has linked the documents after filing the returns, the Income Tax department will not pay interest on the refund amount for the period that the documents weren’t linked.
- The tax deducted at source (TDS) and tax collected at source (TCS) will be deducted/collected at a higher rate.
- Taxpayers can ensure their PAN card is operative again within 30 days post paying the INR 1000 fine as a late fee.
The Value of Aadhaar & PAN Card Linking
For all PAN card holders, Aadhaar PAN linking is important for the listed reasons:
- It removes the chance of a person having more than one PAN Card.
- Aadhaar-PAN linking helps the Income Tax Office spot any tax evasion.
- Filing income tax returns has become easier since people do not need to give proof of filing their income tax returns.
- Aadhaar and PAN Card linking stop the PAN from being revoked.
The Importance of Aadhaar-PAN Linking
Unique identification cards, such as the PAN card and the Aadhaar card, are required for registration and identity verification. The government has advised all firms on Aadhaar-PAN linking. The following goals motivate this action:
- Tackling Tax Evasion
The government would be able to monitor the taxable activity of a specific person or company through Aadhaar-PAN linking, and their Aadhaar card will serve as proof of their identity and residence. This means that the government will keep track of every taxable trade or activity.
As a result, tax evasion would not be able to occur for long. This will happen because the government already has a thorough record of all financial events that would trigger taxation for each firm.
- Several PAN Cards
Connecting PAN and Aadhaar is another reason to prevent people from obtaining numerous PAN cards to scam the government.
An entity could use one of the PAN cards for a specific set of economic operations and the associated taxes by applying for more than one PAN card. The other PAN card could be used for transactions or accounts that the entity wants to keep hidden from the Income Tax Department to avoid paying tax on them.
The government could identify an entity through their Aadhaar card and afterward have records of all money transactions done through an Aadhaar PAN linking with the Aadhaar card. The state will be able to recognize duplicate PAN cards registered in the same name and take appropriate action if this occurs.
Methods for Connecting PAN to Aadhaar
There are two methods for linking PAN cards with Aadhaar cards. They are as follows:
- Through the Income tax e-filing portal
- SMS transmission
Using an e-Filing Website for Aadhaar-PAN Linking
The methods below show how to link the PAN Card to the Aadhaar Card online. The linking process is done using the Income Tax Department of India’s e-filing website.
Visit the Income Tax e-filing website.
One will notice a ‘Quick Links’ button. To start, click on it and then pick the ‘Link Aadhaar’ sub-option.
When one completes the same, a pop-up message will appear saying that the payment information has been validated. To proceed, choose the ‘Continue’ option.
On the website to which one will be routed, they must enter their PAN and Aadhaar card number. To continue, click the ‘Validate’ button at the end of this stage.
The Aadhaar card number, PAN card number, and name as it appears on the Aadhaar card must be entered. There are two check boxes behind it as well. One will inquire whether or not the Aadhaar number contains the birthdate, and the other will request consent to validate the Aadhaar. If it applies, select option number one. The other requires one to click on the exact link to continue.
On the next screen, enter the OTP (One Time Password) that will be sent to the registered mobile number. Choose the ‘Validate’ option. Remember that the above OTP comes directly from the Department of Income Tax of India.
The Aadhaar-PAN linkage request has finally been lodged with UIDAI (Unique Identification Authority of India); it will also state that one must verify the same status in a few days. If one gets such a message, they have successfully requested that their Aadhaar be linked to their PAN Card.
How to Link Aadhaar Card-PAN Card through SMS
For the process of linking a PAN Card with an Aadhaar Card by SMS, follow these steps:
Send a message within the format UIDPAN<12 Digit Aadhaar> <10 Digit PAN>.
Send a text message from the Aadhaar-linked mobile number to either 56161 or 567678.
How to Make Changes in Aadhaar Card for PAN-Aadhaar Linking
To fully link the PAN Card to the Aadhaar Card, one must verify that each piece of data is the same. In a few cases, the data on the Aadhaar Card may differ from that on the PAN card. If this is the case, inaccuracies on the Aadhaar card may be corrected either offline or online with a few easy procedures. Continue reading to learn about corrections in linking PAN card with Aadhaar Card:
Go to UIDAI’s official website.
Enter the 12-digit Aadhaar number and the case-sensitive captcha code to log in.
Select “OTP” as the option. After that, a one-time password (OTP) will be sent to the linked mobile phone number. Enter it and click the ‘Submit’ button to continue.
On the next screen, choose the areas of the Aadhaar Card that require updating. Keep photocopies of the relevant papers on hand since submitting them is mandatory.
After sharing the needed documents and forms, a URN (Update Request Number) will be produced. One should make a note of it for future reference.
Linking PAN cards with Aadhaar cards is now a need. The process of linking a PAN to an Aadhaar card is relatively simple. The article above discussed two ways of linking PAN cards with Aadhaar cards and all about the deadlines and correction methods. If you need more guidance and assistance with such processes, visit Piramal Finance. This online platform is what you need to learn everything about relevant developments, procedures, and products in the world of finance. For more information on financial matters or about personal loans, credit cards, and financial management, check out the blogs on their website!