All You Need To Know About PAN & Aadhar Linking

In the realm of identity, individuals who are applying for a new PAN Card can conveniently link it with their Aadhaar Card automatically. For those who already possess PAN Cards issued prior to July 1, 2017, they now need to link the two cards using the Link Aadhaar service, which is open to all individual taxpayers. It’s important to note that there is a deadline – by June 30, 2023, it is necessary to link your PAN Card with your Aadhaar Card in order to prevent it from becoming inactive. There are exceptions that may apply. In this fusion of technology and financial compliance, taking action becomes crucial for maintaining a financial identity.

Instructions For Linking PAN Card with Aadhaar Card

There are three ways to link a PAN Card with an Aadhaar Card:

1. Logging into your Income Tax portal account
2. Without logging into the account
3. Linking via SMS

Method 1: Logging Into Your Income Tax Portal Account

• If you’re not already a user, make sure to sign up on the Income Tax e-filing portal
• Once you’ve registered, log in using your User ID

• Provide your password. Confirm access
• Click on ‘Continue’ to proceed
• Look for the option ‘Link Aadhaar’. Find it under ‘Personal Details’, in the ‘My Profile’ section.
• Fill in the information, such as your name, gender and date of birth.
• Double check all the details displayed on the screen and tick the box that says, ‘I agree to validate my Aadhaar details’
• In case your Aadhaar card only shows the year of birth, select the option that says, ‘I have year of birth on the Aadhaar card’
• Click on ‘Link Aadhar’
• A pop-up message will appear confirming that your PAN and Aadhaar have been successfully linked.

Status Check:

• Sign in to the Income Tax e-filing portal
• Go to the ‘Dashboard’. Click on ‘Check Aadhaar Linking Status’
• Alternatively, you can find ‘Check Aadhaar Linking Status under ‘My Profile’
• If your Aadhaar number is linked, it will be displayed as ‘Your PAN is already linked to given Aadhaar’
• If your Aadhaar number is not linked, you will see the option to link it
• For any pending requests, please check the status later with UIDAI.

Method 2: Without Logging Into the e-filing Account

• Go to the Income Tax e-filing portal
• Look for the option that says “Link Aadhaar” and click on it
• Provide your PAN and Aadhaar number. Make sure to enter your name exactly as it appears on your Aadhaar card (check for any spelling mistakes). After that, submit the information.

• The UIDAI verification process will validate the linking of your PAN with Aadhaar.
• Once the verification is complete, a message confirming the linking will be displayed

Status Check:

• Go to the Income Tax e-filing portal
• Look for ‘Quick Links’ and Choose ‘Link Aadhaar Status’
• Provide your PAN number and Aadhaar Number. Then click on ‘View Link Aadhaar Status’

Method 3: Linking Via SMS

To connect your PAN card with Aadhaar card through SMS: 

• Send a text message from the number registered with your account in the following format UIDPAN <12 digit Aadhaar number> <10 digit PAN number>
• You can send the message to either 567678 or 56161.

Status Check:

• Send an SMS in this format: UIDPAN <12 digit Aadhaar number> < 10 digit PAN number>
• SMS to ‘567678’ or ‘56161’
• Await for the government service response

Penalties On Exceeding The Deadline

Initially, linking your PAN card to your Aadhaar card was free until March 31, 2022. If you link them between April 1, 2022 and June 30, 2022, a penalty of Rs. 500 was imposed. Starting July 1, 2022, the penalty went up to Rs. 1,000. To avoid this penalty, it is necessary to link your Aadhaar card with your PAN card before June 30, 2023. Failing to do so will result in your PAN card becoming inoperative from July 1, 2023.

To make payments for the AY 2023–24 on the NSDL portal to link your PAN Card and Aadhaar Card, follow these steps:

1. Go to the tax payment page on the Income Tax e-filing portal.
2. In the Non-TDS/TCS section, select Challan No./ITNS 280.
3. On the screen, choose ‘(0021)’ as the Major head and ‘(500)’ as the Minor head.
4. Select your payment method.
5. Provide details such as PAN, address, assessment year, etc.
6. Use a debit card, credit card, net banking or authorized banks (HDFC Bank, Axis Bank, PNB, Bank of India, SBI) to make your payment.
7. Submit your request to link PAN Card and Aadhaar Card; it will be processed within 4 to 5 working days.

Importance of Linking PAN Card with Aadhaar Card

• Reducing Tax Evasion: When PAN and Aadhaar are linked, the government can effectively track individuals’ financial activities, which in turn helps reduce the likelihood of tax evasion. This measure contributes to establishing an equitable tax system.
• Avoiding Duplicate PAN Cards: Aadhaar assigns an identification number to each individual, effectively eliminating the issue of duplicate PAN cards. This proactive step minimizes the risk of identity fraud and misuse of PAN cards.
• Streamlined Financial Transactions: Linking Aadhaar with PAN simplifies the process of verifying an individual’s identity during transactions. This eliminates the need for documents and extensive paperwork, making it hassle-free for individuals to access services and actively participate in various economic activities.
• Enhanced Access to Government Services: To avail government services like passport applications, subsidies or opening a bank account, submitting both PAN and Aadhaar cards is mandatory. Therefore, linking these two documents becomes crucial for accessing government provisions.

Apart from these advantages, it is important to note that linking PAN with Aadhaar is compulsory for all taxpayers in India. The deadline for this linkage was June 30th, 2023. If you haven’t connected your PAN with Aadhaar yet, it is recommended that you do so promptly to avoid any inconvenience.

Exemptions From Linking Aadhaar-PAN:

• In case you live in Assam, Jammu and Kashmir, or Meghalaya
• If you are considered a non-resident under the Income Tax Act, 1961
• In case you are 80 years or older during the year
• If you are not a citizen of India

Note:

• Exemptions may be subject to changes as notified by the government.
• For information, please refer to Department of Revenue Notification No. 37/2017 dated May 11, 2017.
• If you fall into any of the categories but still wish to link your Aadhaar with your PAN, pay a fee on the Income Tax e-filing portal.

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Conclusion

To transfer international remittances on HOPRemit by moneyHOP, as per the latest circulation by the Government of India, it is mandatory to link the PAN card with Aadhaar. In case of failing to do so, an individual will not fall under the eligibility criteria for any international money transfers on HOPRemit. The PAN Card will be inoperative upon missing the deadline to link it with Aadhaar, where the individual/person will be unable to file income tax returns (ITR), receive tax refunds, open new bank or Demat accounts, get credit or debit cards, access government subsidies or apply for a passport. To avoid facing these outcomes, it is vital to link PAN card with Aadhaar card.