As part of the Indian Government’s ongoing efforts to streamline financial transactions and improve tax compliance, it is now mandatory to link your Aadhaar number with your Permanent Account Number (PAN). This guide will help you understand the importance of linking Aadhaar with PAN, the different methods to do so, and how to check the Aadhaar-PAN link status.
The Central Government has extended the last date for linking PAN with Aadhaar to June 30, 2023. This extension provides additional time for individuals to link their Aadhaar with PAN to ensure compliance with the government’s regulations. It is crucial to link your Aadhaar and PAN by this deadline to avoid any penalties or invalidation of your PAN besides:
(i) No refund shall be made against such PANs;
(ii) Interest shall not be payable on such refund for the period during which PAN remains inoperative
(iii) TDS and TCS shall be deducted /collected at a higher rate, as provided in the Act.
The Different Ways to Link Aadhaar with PAN Card
There are two primary methods to link your Aadhaar with your PAN card. You can either do it via SMS or through the Income Tax Department’s e-filing portal.
1.1 Linking Aadhaar with PAN via SMS:
The SMS-based method is the simplest way to link your Aadhaar with PAN. Just follow these steps:
- Type a text message in this format: UIDPAN<space><12-digit Aadhaar number><space><10-digit PAN number>.
- Send the message to 567678 or 56161 from your registered mobile number.
- You will receive a confirmation message once the linking process is complete.
1.2 Linking Aadhaar with PAN via Income Tax Department Portal:
Another method to link your Aadhaar with PAN is by using the Income Tax Department’s e-filing portal. Here is a step-by-step guide:
- Visit the Income Tax Department’s e-filing portal (https://www.incometaxindiaefiling.gov.in).
- Log in to your account using your User ID, password, and captcha code.
- Click on the ‘Profile Settings’ tab and select ‘Link Aadhaar.’
- Enter your Aadhaar number and PAN, then click on the ‘Link Aadhaar’ button.
- A confirmation message will be displayed upon successful linking.
How to Check the Aadhaar-PAN Link Status
After linking your Aadhaar with PAN, it is essential to verify their link status. Follow these steps to check the status:
- Visit the Income Tax Department’s e-filing portal (https://www.incometaxindiaefiling.gov.in).
- Click on the ‘Quick Links’ section and select ‘Link Aadhaar.’
- Enter your PAN and Aadhaar number, then click on ‘View Aadhaar-PAN Link Status.’
- The status of your Aadhaar-PAN link will be displayed on the screen.
The Importance of Linking Aadhaar with PAN Card
Linking your Aadhaar with your PAN has several benefits. Some of the key reasons why you should link the two are:
- Improved Tax Compliance: By linking Aadhaar and PAN, the Income Tax Department can easily track and verify an individual’s income and tax-related transactions. This helps in improving overall tax compliance and reduces the chances of tax evasion.
- Simplified Tax Filing: When your Aadhaar is linked with your PAN, your income tax returns can be pre-filled with relevant data, making the e-filing process smoother and more accurate.
- Prevention of Multiple PANs: Linking Aadhaar with PAN helps prevent the issuance of multiple PAN cards to a single individual, curbing potential misuse of the system.
- Ease of Availing Government Benefits: With a linked Aadhaar and PAN, you can effortlessly avail various government schemes and subsidies.
Linking your Aadhaar with PAN is a crucial step towards ensuring a transparent and efficient tax system in India. By following the methods outlined in this guide, you can seamlessly link your Aadhaar with your PAN card and check their link status. Remember, a linked Aadhaar-PAN not only ensures compliance with government regulations but also simplifies your tax-related transactions.
