Linking Pan And Aadhaar: A Step-By-Step Guide

It is mandatory for all residents of India to link their PAN with their Aadhaar as per provisions of Section 139 AA of the Income Tax Act 1961. This process will allow your income tax returns to be processed. If you do not link your PAN with your Aadhaar, your PAN will become inoperative and you will face difficulties in opening Demat accounts, investing in RBI bonds, and more. The process of linking your PAN and Aadhaar can be done online by visiting the Income Tax e-Filing Portal and following the instructions.

Linking PAN with Aadhaar is mandatory

An inoperative PAN status has several consequences, including the inability to file income tax returns, difficulties in accessing government services such as applying for a passport or opening a bank account, and higher tax deduction/collection rates under Sections 206AA and 206CC of the Income Tax Act, 1961. Additionally, as per NSDL/CDSL guidelines, Demat account opening and transaction processing will be restricted for inoperative PANs.

To link your PAN with your Aadhaar, you can follow these general steps:

• Visit the Income Tax e-Filing Portal.
• Log in and navigate to the ''Link Aadhaar' option under the 'Quick Links' section.
• Enter your PAN and Aadhaar number, as well as any other required details.
• Verify your information by entering the OTP sent to your mobile number.
• Submit the Aadhaar-PAN link request.

It is important to note that there may be slight variations in the process depending on specific circumstances, such as whether you are a new applicant or an existing PAN holder. Additionally, individuals falling under certain exempt categories, such as those residing in the states of Assam, Jammu and Kashmir, and Meghalaya, are not required to link their PAN with Aadhaar.

How to link PAN with Aadhaar online

The government has introduced a law making it mandatory for every individual having a PAN to link it with their Aadhaar number. Here is a step-by-step guide on how to link your PAN with your Aadhaar card online:

Step 1: Visit the Income Tax e-Filing Portal

Go to the official website of the Income Tax Department and click on the 'e-Filing' option. On the e-Filing portal, click on the ''Link Aadhaar' tab under the 'Quick Links' section. Alternatively, you can log in to the portal and click on 'Link Aadhaar' in the 'Profile' or 'Personal Details' section.

Step 2: Enter your PAN and Aadhaar Number

Enter your PAN and Aadhaar number in the respective fields. Make sure that the details match exactly as any mismatch may lead to errors.

Step 3: Validate and Enter OTP

Click on the 'Validate' button. You will receive a one-time password (OTP) on the mobile number registered with your Aadhaar. Enter this OTP to verify your request.

Step 4: Enter Additional Details

In some cases, you may be required to enter additional details such as your name, date of birth, and gender. Ensure that these details match the information on your Aadhaar card.

Step 5: Submit the Linking Request

After validating your details, submit your request to link your PAN with your Aadhaar. Your request will be sent to the Unique Identification Authority of India (UIDAI) for final validation.

It is important to note that there may be fees associated with linking your PAN and Aadhaar, especially if the deadline for free linking has passed or if corrections are required. The process is straightforward and can be completed online without submitting any physical documents.

Exemptions from linking PAN with Aadhaar

As per a notification issued by the Union Finance Ministry in May 2017, there are four categories of people who are exempted from the mandate to link their PAN with their Aadhaar:

• Residents of the north-eastern states of Assam, Meghalaya, and the Union Territory of Jammu and Kashmir: People residing in these states and Union Territory are not required to link their PAN with their Aadhaar.
• Non-residents as per the Income-Tax Act of 1961: Individuals who are non-residents as per the Income-Tax Act are exempt from this requirement.
• Individuals aged 80 years or above: Those who are 80 years of age or older at any time during the previous year are exempted from linking their PAN with Aadhaar.
• Residents of exempted areas: There may be specific areas or regions that are exempted from the PAN-Aadhaar linking mandate. These areas are determined by the latest government notifications and may be subject to modifications over time.

It is important to note that the exemptions provided are subject to change and may be modified by the government. For the most up-to-date information on exemptions, it is advisable to refer to official government sources or websites.

Consequences of not linking PAN with Aadhaar

The Indian government has mandated the linking of PAN (Permanent Account Number) with Aadhaar, and failure to comply can have significant consequences. The deadline for this was initially set for 31 May 2024, with a late penalty being charged after this date. However, the deadline was later extended to 30 June 2023.

If an individual fails to link their PAN with their Aadhaar, their PAN will become inoperative. This has a number of implications, including:

• The individual will not be able to file income tax returns or claim refunds.
• Pending returns will not be processed, and pending refunds will not be issued.
• Tax will be deducted at a higher rate.
• The individual will be unable to open a bank account, issue debit or credit cards, purchase mutual fund units, or make large cash deposits with a bank or post office.

To reactivate an inoperative PAN, individuals must pay a fee of Rs.1,000 and submit a request to link their PAN with their Aadhaar.

How to check the status of your PAN-Aadhaar link request

To check the status of your PAN-Aadhaar link request, you can follow these steps:

Using the e-Filing Portal

• Visit the e-Filing Portal Home page.
• Click on 'Link Aadhaar Status' under the 'Quick Links' section. If you are already logged in, you can click on 'Link Aadhaar Status' in the 'Profile' section of your dashboard.
• Enter your PAN and Aadhaar number.
• Click on 'View Link Aadhaar Status'.
• A message will be displayed regarding your Link Aadhaar Status. If your Aadhaar is already linked, the Aadhaar number will be displayed. If it is not linked, you will see a message saying 'Link Aadhaar Status' or 'PAN not linked with Aadhaar'.

Using SMS

Alternatively, you can check the status of your PAN-Aadhaar link request by sending an SMS to '567678' or '56161'. Here are the steps:

• Write the following SMS: UIDPAN your 12-digit Aadhaar number your 10-digit PAN number.
• Send the SMS to the specified number.
• Wait for the response from the government service. You will receive a message confirming whether your Aadhaar is linked to your PAN or not.

It is important to note that if your request to link PAN and Aadhaar is pending with UIDAI for validation, you may need to check the status later. Additionally, if your PAN card has become inoperative due to non-linking with your Aadhaar card, you may need to pay a penalty and submit a request to link your PAN and Aadhaar.

Frequently asked questions