How to Link PAN with Aadhar? Here is a step by step guide

PAN and Aadhaar number has importance and significance both. PAN is a Permanent Account Number and it is an identity proof to track the source of your income and expenses. However, these two things have so much importance for the people living in India. These two cards need to be linked with each other. Aadhaar mandates the linkage of your 12-digit biometric ID to your bank accounts and cell phone numbers.

Aadhar Card

Aadhaar is a unique 12-digit number that can be obtained by an individual. Aadhaar is the world’s largest biometric ID system and enables paperless, smart and secure authentication. With over 1 billion enrollments, Aadhaar has become India’s most credible identity system and is widely accepted. By providing a unique identification number to every citizen, the Aadhaar card allows for seamless transfer of benefits, subsidies, or entitlements to impoverished people by plugging holes in the leaky delivery pipeline.

PAN Card 

A PAN is a unique taxpayer identification number issued by the Income Tax Department. It is mandatory to quote this number in all financial transactions in which gains or losses are to be computed or in case of transfer of property. It provides access to a wide variety of financial services like acquiring loans and credit cards, business registration, buying and selling non-cashable securities and applying for a salary. It also gives you the freedom to open foreign bank accounts, rent / purchase properties abroad / or apply for a credit card outside India.

Introduction

Aadhaar has become an important identity document for citizens. While the mandatory linkage of Aadhaar number with PAN is likely to link both databases, it is not clear if this would lead to any further consequences which may affect the taxpayer due to this linkage. In this regard, an individual may be required to link their PAN to the Aadhaar using a valid reason or come under the scrutiny of IT authorities. 

  • E-filing of Income Tax returns for FY 2017-18 has been extended up to March 2021. This means that taxpayers still have time to link Aadhaar and Pan without any adverse consequence.
  • This is a one of a kind opportunity missed by most taxpayers. Failure to link Pan and Aadhaar can attract penalty from July 1, 2019 onwards – i.e 31 months from the date of the notification i.e., from 30 September 2018 onwards.
  • Also, one can always apply for a new PAN after the Aadhaar card is linked to the tax file number. Or, there’s a facility to make a correction in one’s income-tax return even after filing it. In that case, the department will accept the amendment as long as there is a genuine reason for claiming a reward, or as long as one has not been caught red-handed doing frauds.

Online Linking of Aadhaar Number and PAN

You can login using the existing biometric details along with the Aadhaar number. Alternatively, you can opt for offline linking which will require you to key in details of Aadhaar, Permanent Account Number (PAN) and Mobile number by visiting any income tax office or e-filing center. The Income Tax Department has started a facility for online submission of an application from taxpayers to link their Aadhaar with PAN. To this there are two steps for it. These are :

  1. Without logging in to your account

The method in which you don’t need to form or manage any account and the only way is to follow these two simple steps. PAN and Aadhaar need to be linked for availing the benefits of social security schemes The two simple steps are : 

  • Step 1: To facilitate the linking of individuals with Aadhaar, some new tabs have been created by the income tax department on e-filing portal and that are linked by www.incometaxindiaefiling.gov.in. These are “Link Aadhaar”, “Update Aadhaar Profile” and “Delete Aadhaar Data”.
  • Step 2: After visiting the website, one needs to submit the following documents to the site. These documents are :
    • PAN;
    • Aadhaar no
    • Name of the person as written on the Aadhar Card.

Once you fill up all details online, the portal will generate an ‘Aadhaar-PAN linking request Form’ which you can download. The form is to be signed by the applicant and self attested photocopies of the documents are to be uploaded for further processing. All documents to be self attested will not be returned to the taxpayer after filing this form. Thus, ensure that all details provided in the downloaded attachment matches with self attested copies of the document submitted.

  1. Logging in to your account

When linking the Aadhar with your PAN card, this method comes into play as you can link them with an account logged in. However, this method is a six step process which makes it a bit difficult for the users. The steps involved will be :

  • Step 1: This is just a one time activity and you will get away with it . Just get the password and username from the income tax e filing portal which you can then use to file income tax returns online.
  • Step 2: To log into the e-Filing portal of the Income Tax Department enter your credentials and click on submit. The account owner must be physically present before submitting the documents.
  • Step 3: After logging in to the site, there will be two options on the top bar – Profile Settings and Aadhaar Linking. If you are an existing member, click on Profile Settings.
  • Step 4: Verify the details entered correctly and in case there is any mismatch, refrain from filing the return immediately. Further you can inform your tax consultant in case you have one. However, the details will be mentioned early on and the person just needs to check it clearly.
  • Step 5: After you click on the “Link now” button by matching all the details and putting up the Aadhar Number, follow the instructions and submit your details. You will automatically receive an OTP (One Time Password) on your registered mobile number. Enter this OTP to proceed with your Aadhaar number verification.
  • Step 6: You just got an alert on your phone that reads: ‘Aadhaar linking to PAN is completed.’ You breathe easy. The process of filing income-tax returns is one you hate, but this year it is less of a burden than usual.

 Once the above steps are complete, your PAN card will be linked to your Aadhar card. You can then access your PAN card using your Aadhar number, by visiting the Income Tax Department website. After your Aadhar Card is linked to PAN then you don’t need to update the Aadhaar card every year and also update income tax return each year and it will save a lot of time and frustration and money and we will be connected with the government database directly without anyone having a duplicate Aadhar card.

Linking of Aadhaar Number and PAN through SMS 

The SMS facility is being offered on a new Income Tax Department website called Aadhaar-PAN linking. By linking their Aadhaar to their PAN, taxpayers can quote the former in any compliance-related communications, such as filing of ITRs, Income Tax Returns and application for PAN. The Department has said it is not mandatory to link them immediately. On this portal, a person will have to enter his PAN, Aadhaar number and the name as per the Aadhaar card to initiate the linking process. A verification code will be sent to the mobile number linked with Aadhaar. After entering this code, the linkage will be confirmed.

However, for it, the users need to understand a proper method that will help them in linking the PAN card with the Aadhar card. This is :

  •     The user needs to send a message through the registered number on 567678 or 56161.
  •     However, the SMS should be in a format and the format is as follows :

UIDPAN<SPACE><12 digit Aadhaar><Space><10 digit PAN>

Indeed the Reserve Bank of India has instructed that henceforth linking of PAN with Aadhaar may also be done specifically through e-filing of return. It has also been further clarified that the existing options under the SMS interface for linkage may continue to be used for time being. This service issued by the government has been a great step for the people living in India.

Related Article: Process to Link Your Aadhaar Card with ITR

Conclusion

Aadhaar is now being made mandatory for PAN cards linked with bank accounts. The government says that they are just trying to curb fraud by linking this data, but if that was true there’s no reason why you couldn’t use a pseudonym. If you haven’t already created an account on the Aadhar Card portal, now is the time.  If you haven’t also linked your PAN Card to an Aadhar card, nothing could be more important than doing the same. It may seem this is a good thing that the government has managed to provide a way for us to keep smart cards.

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