The Government of India has been trying to make one ID as a unique identifier for all Indians. This ID is our Aadhar card and it was made mandatory to mention Aadhar Number in Income Tax Return (ITR) with effect from July 1, 2017, i.e. from AY 2017-18. Further, it has been made mandatory to link Aadhar to PAN for persons holding both as per the provisions of the Income Tax Act, 1961.
However, in case if the assessee does not hold Aadhar at the time of filing ITR, he may enter the Enrolment ID allotted to him after applying for Aadhar. In addition to this, even for depositing more than Rs. 50,000 in the Bank Account, PAN is to be mandatorily mentioned in Deposit Slip and it shall be linked with Aadhar.
Accordingly, in this article, we will discuss the different procedures to link Aadhar to PAN and the penalties for non-compliance thereof.
Link Aadhar to PAN
There are 3 ways to link Aadhar to PAN and we will discuss them in detail below:
A. Using Quick Links
Step – 1: Visit the e-filing portal of the Income Tax Department by clicking here and click on the “Link Aadhar” option under the Quick Links Tab as shown in the image below :
Step – 2: Now, the following window will appear on the screen:
Step – 3: In this window fill the required details and click on the “Link Aadhaar” button. In case your Aadhar has the only Year of Birth and not complete Date of Birth then click on the CheckBox aligned with “I have only Year of Birth on Aadhaar Card”.
Step – 4: Now, an OTP will be sent to your Mobile Number registered with Aadhaar Card. Enter the OTP so received via SMS in the respective filed and click on the “Validate” button.
On successful Validation, it will link Aadhar to PAN card.
B. Login to Account:
If you have registered your PAN on the e-filing portal of the Income Tax Department, you can link Aadhar to PAN by following the steps given below:
Step – 1: Visit the e-filing portal of the Income Tax Department by clicking here and click on the “Login Here” button as shown in the image below:
Step – 2: Now, the following window appears on the screen. Enter your PAN in “User ID” field, Password and Captcha in respective fields and click on the “Login” button:
Step – 3: Thereafter, click on the “Profile Settings” Tab and choose the “Link Aadhaar” option.
Step – 4: Now, furnish the details in respective fields and click on the “Link Aadhaar” button.
Step – 5: Now, an OTP will be sent to your Mobile Number registered with Aadhaar Card. Enter the OTP so received via SMS in the respective filed and click on the “Validate” button.
Upon successful validation, a pop-up message showing that your process to link Aadhar to PAN is completed.
C. Link Aadhar to PAN via SMS
The assessee may opt to link Aadhar to PAN by using an SMS facility. To link Aadhaar with PAN, the assessee just need to type an SMS as “UIDPAN<SPACE><12 DIGIT AADHAAR NUMBER><SPACE>10 DIGIT PAN>” and send it to 567678 or 56161.
D. Manual linking
In case there is a mismatch between Aadhar and PAN, there is a manual method as well. You can visit PAN service centre, NSDL or UTIITSL. You are required to submit copies of PAN card or Aadhar for verification purposes. This is not a free service and fee needs to be paid. The fee would depend on whether corrections are required in PAN or Aadhar card. The fee for making corrections in PAN card is Rs 110 and fee for correcting Aadhaar details is Rs 25. Once the corrections are done you can easily link Aadhar to PAN.
Penalty for not Linking PAN with Aadhaar
As per the provisions of the Income Tax Act, 1961 a person who fails to Link his Aadhaar with PAN before the latest due date i.e. 31st March 2020, shall be liable to pay a penalty of Rs. 10,000/-
To conclude, it is mandatory now to link Aadhar to PAN as per Income Tax Act 1961. It can be done manually by visiting appropriate centres or can be done online.
How to link Aadhar to PAN (FAQs) :
1. Is it compulsory to link Aadhaar to PAN?
Yes, it is compulsory to link your PAN and Aadhaar.
2. Can Aadhaar and PAN be used interchangeably?
Yes, you may use Aadhaar in place of PAN for ITR filing purposes and can also quote Aadhaar Number in place of PAN for doing financial transactions.
3. What is the due date of Linking Aadhaar with PAN?
Currently, 31st March 2020 is the due date for linking Aadhaar with PAN.
4. Does the Supreme Court allow the linking of Aadhaar with PAN?
Yes, the Supreme Court in its ruling has upheld the validity of linking Aadhaar with PAN.
5. What are the consequences of not linking Aadhaar with PAN apart from a penalty?
Apart from the penalty, your PAN may be deactivated which may become a hurdle for you in doing financial transactions.
6. What are the documents required for linking PAN with Aadhaar?
Only PAN and Aadhaar Number is required for this process.
7. Is there any fee payable to link Aadhar to PAN?
No there is no fee chargeable for linking PAN with Aadhaar.
8. Can we link Aadhar to PAN manually?
Yes, you can link Aadhar to PAN manually by visiting PAN service centre, NSDL or UTIITSL
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