IS IT MANDATORY TO LINK AADHAAR CARD WITH PAN CARD ?

The two most important identification documents for all Indian citizens are The Permanent Account Number Card (PAN Card) and the Aadhaar Card. The Income Tax (IT) department issues the PAN card, while the Unique Identification Authority of India (UIDAI) issues the Aadhaar Card. PAN is a unique Identification number issued to individuals and businesses for the tax purposes. While the Aadhaar number is a 12-digit unique identification number issued for all residents of India. Yes, it is mandatory to link Aadhaar Card with PAN Card. The IT department has made the linking of PAN Card and Aadhaar card mandatory. This is because your PAN will become inoperative if your Aadhaar is not linked with it.

Who needs to link Aadhaar Card and PAN Card ?

Section 139AA of the Income Tax Act provides that every individual who has been allotted a permanent account number (PAN) as on the 1st day of July, 2017, and who is eligible to obtain an Aadhaar number, must link their PAN with Aadhaar Card.

What is the Last date to link your PAN Card with Aadhaar card ?

The last date for linking the Aadhaar Card with PAN card was 30th June 2023. After that, your PAN will become inoperative from 1st July 2023 if it is not linked with Aadhaar. However, people who fall under the exempted category will not be subject to the effects of PAN becoming inoperative.

The latest update is the Income Tax Department has issued a reminder to taxpayers to link their PAN with Aadhaar by 31st May 2024 if they have not yet linked them yet.

What will Happen to PAN Cards Not Linked with Aadhaar Card ?

Those PAN Cards which are not linked to Aadhaar Card by 30th June 2023 have now become inoperative. And if PAN Card becomes inoperative then it will have a number of implications such as:

  • Not linking PAN card with Aadhaar Card will make your PAN card inoperative and hence you will not be able to provide your PAN number for financial transactions.
  • Pending refunds and interest on these refunds will not be issued to these PAN holders.
  • It will lead to tax deduction/ collection (TDS/ TCS) at a higher rate under Sections 206AA and 206CC of the Income Tax Act, 1961. This is because of using an inoperative PAN for transactions entered into before 31 March 2024.

However, you can still apply for linking your PAN with your Aadhaar even now after paying the penalty and your PAN card will be operative within 30 days. 

Who all are exempted from the PAN-Aadhaar linking?

Those individuals who comes under the exempt category need not link PAN-Aadhaar within 30th June 2023. Below are the people who come under the exempt category :

  • All the individuals who are residing in the states of Jammu and Kashmir, Assam and Meghalaya.
  • An NRI (A non-resident taxable person) as per the Income-tax Act, 1961.
  • People aged more than 80 years (Senior Citizens).
  • Persons who are not citizens of India.

What to do if the PAN-Aadhaar is not linked yet ?

Incase of not linking PAN with Aadhaar card, the PAN status will still be shown as Active but inoperative. In this case, their service recipients will be doing higher tax deductions.

But don’t worry. You can still link PAN and Aadhar Card by paying a fine of Rs. 1000. After that, your PAN status will be active and operative within 7-30 days. And then you will have all your TDS credits showing in your Form 26AS and you can rightly claim them while filing taxes.

How to link Aadhaar Card and PAN Card?

Step 1 : Go to Income Tax portal online.

Step 2: Enter the following details:

  • PAN
  • Aadhar Card
  • Name as specified on the Aadhaar card
  • Mobile number

Step 3: If only the year of birth is mentioned in your Aadhaar card, select the checkbox asking “I have only the year of birth in the Aadhaar card” otherwise you may leave it unchecked.

Step 4: You will then receive a 6-digit OTP on your mobile number. Enter this OTP on the verification page on your screen. Once you enter the OTP, click on the ‘Validate’ button. Your linking will be completed.

Note: You may be required to pay a fee to link Aadhar and PAN, this is being charged by the Income Tax Department.

Do I need to submit any document proof for linking Aadhaar Card with PAN card ?

No, you are not required to submit any document proof for getting your Aadhar Card linked with PAN Card. Rather, linking PAN with Aadhaar is a very simple process and can be carried out online. There is also no document required to check PAN Aadhaar link status.

If my income is below taxable limits, will I still be required to link PAN and Aadhaar Card ?

Even if the income of an individual is below the taxable limits, he still is required to link his PAN with Aadhaar Card. Otherwise, it will be deactivated.

Can I link my PAN- Aadhaar Card offline?

No. At present, there is no such provision to link your PAN Card with the Aadhaar Card offline.

Can a PAN card be linked with an Aadhaar number automatically?

Yes, for all the new applicants of PAN Card, the Aadhaar-PAN linking will be done automatically during the application stage. 

Incase of existing PAN holders who all were allotted PAN Card on or before 01-07-2017, need to mandatory link their PAN Card with their Aadhaar Card. The Link Aadhaar service is available to individual taxpayers (both registered and unregistered on e-Filing Portal). Please note that if you do not link your PAN with the Aadhaar till 30th June 2023, your PAN will become inoperative. However, people who fall under the exempted category will not be subject to the effects of PAN becoming inoperative.

If there is a name mismatch in a PAN Card and Aadhaar Card and that is not allowing to link Aadhaar with PAN card. What to do?

In case where the name on the Aadhaar Card is completely different from the name in the PAN Card, you will have to get your name changed in the database of either Aadhaar or PAN to complete the PAN Aadhaar link process.

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