How to Link Aadhar to PAN Card: A Guide

In today’s digital age, managing your financial affairs requires more than just keeping track of your income and expenses. One such requirement is understanding how to link Aadhar to PAN card. This process, mandated by the Indian government, is a crucial step for taxpayers in India.

The Aadhar card, a unique identification document issued by the Unique Identification Authority of India (UIDAI), and the PAN (Permanent Account Number) card, issued by the Income Tax Department, are two key pieces of identification in India. Linking these two has become essential due to a number of reasons.

Firstly, it helps the government keep track of taxable transactions of individuals, thereby preventing tax evasion. Secondly, it simplifies several processes for the cardholder, such as filing income tax returns.

This article aims to guide you through the process of linking your Aadhar card with your PAN card. Whether you’re a seasoned taxpayer or a young professional starting your financial journey, this guide will help you understand the process, its benefits, and its importance.

Stay tuned as we delve deeper into the prerequisites, the step-by-step process, and the verification of linking your Aadhar to your PAN card. Let’s embark on this journey to simplify your financial management.

Understanding Aadhar and PAN Card

The Aadhar card and PAN card are two essential identification documents in India. Let’s delve deeper into what these cards are and their significance.

Aadhar Card: The Unique Identification Document

The Aadhar card is a unique identification document issued by the Unique Identification Authority of India (UIDAI). It contains a 12-digit unique identity number for every individual resident of India. The Aadhar card serves as proof of identity and address anywhere in India.

PAN Card: The Taxpayer’s Identity

The Permanent Account Number (PAN) card, issued by the Income Tax Department, is a unique 10-digit alphanumeric identity assigned to each taxpayer in India. It is essential for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets, trading of mutual funds, etc.

Linking Aadhar and PAN Card: A Legal Requirement

For new PAN card applicants, Aadhar-PAN linking is automatic. Existing PAN holders before 01-07-2017 must link PAN with Aadhaar by June 30, 2023, or PAN becomes inoperative, unless exempted.

The Process of Linking Aadhar and PAN Card

The process of linking Aadhar to PAN card can be completed online through the e-Filing portal of the Income Tax Department. The portal provides a step-by-step guide to link Aadhar to PAN card, which includes payment of a fee, post which you can link your Aadhaar with PAN.

The Importance of Linking Aadhar and PAN Card

Linking Aadhar to PAN card has several benefits. It helps the government keep track of taxable transactions of individuals, thereby preventing tax evasion. It also simplifies several processes for the cardholder, such as filing income tax returns.

Why Link Aadhar to PAN Card?

Linking your Aadhar to your PAN card is not just a legal requirement but also has several benefits. Let’s delve into why this process is so important.

Legal Requirement

“According to Section 139AA of the Income Tax Act, if you have a PAN issued before July 1, 2017, and are eligible for Aadhaar, you must link them before a specified date. Failure to do so by June 30, 2023, renders your PAN inoperative.

Exemptions from this requirement apply to individuals:

Residing in Assam, Jammu and Kashmir, or Meghalaya;
Non-residents as per the Income-tax Act, 1961;
Aged eighty years or more during the previous year;
Not citizens of India.”

Benefits of Linking Aadhar and PAN Card

There are several benefits of linking your Aadhar to your PAN card:

Prevention of Tax Evasion: Since most transactions now require the Aadhar number, linking it to PAN allows the Income Tax Department to quickly see a complete activity trail. This helps in preventing tax evasion.

Ease of Filing Income Tax Returns: Taxpayers can easily e-verify their returns without digital signatures. Even without an Aadhaar number, you can access the Income Tax Portal as PAN and Aadhaar are linked.

If you don’t link your PAN with Aadhaar by June 30, 2023, your PAN becomes inactive, halting all processes requiring PAN.

Pre-requisites for Linking Aadhar to PAN Card

Before you begin the process of linking your Aadhar to your PAN card, there are a few prerequisites that you need to fulfill:

Valid PAN: You must have a valid Permanent Account Number issued by the Income Tax Department of India.

Valid Aadhar Number: You must have a valid Aadhar number issued by the Unique Identification Authority of India (UIDAI).

Valid Mobile Number: A valid mobile number is required for OTP verification during the linking process.

If you don’t link your PAN with Aadhaar by June 30, 2023, your PAN becomes inactive. Exempted individuals won’t be affected. Pay the fee for PAN-Aadhaar linkage through the e-Pay Tax function on the e-filing portal.

Step-by-Step Guide to Link Aadhar to PAN Card

Linking your Aadhar to your PAN card is a simple process that can be completed online through the e-Filing portal of the Income Tax Department. Here’s a step-by-step guide:

Payment of Aadhaar-PAN Link Fee

Before you can link your Aadhar to your PAN card, you need to pay a fee. Here’s how you can do it:

To link your Aadhaar with PAN, follow these steps:

Go to the homepage of the e-Filing Portal and select “Link Aadhaar” from the list of Quick Links.
Enter your PAN and Aadhaar Number, then click “Continue to Pay Through e-Pay Tax.”
Enter your PAN, confirm it, and provide a mobile number to receive OTP.
After OTP verification, you’ll be redirected to the e-Pay Tax page. Proceed to the Income Tax tile.
Choose the relevant Assessment Year and Type of Payment as Other Receipts (500), then click “Continue.”
The applicable amount will be pre-filled. Click “Continue” to generate the challan.
Select the mode of payment and proceed to the Bank website to make the payment.
Once the fee is paid, return to the e-Filing Portal to link your Aadhaar with PAN.

To submit the Aadhaar-PAN link request:

Log in to the e-Filing Portal and go to the Dashboard. On the “Profile” tab, select “Link Aadhaar.””
Enter the Aadhaar number and click “Validate.”

Alternatively:

Go to the homepage of the e-filing portal and select “Link Aadhaar” from the list of Quick Links.
Enter PAN and Aadhaar, then click “Validate.”
Fill in the mandatory details and click “Link Aadhaar.”

After entering your PAN and Aadhaar numbers, click “View Link Aadhaar Status” to check if your Aadhaar number appears, indicating successful linking.

Conclusion

Linking your Aadhaar to your PAN card is important for taxpayers in India. It helps the government track taxable transactions, prevent tax evasion, and simplifies processes like filing income tax returns.

If you don’t link your PAN with Aadhaar by June 30, 2023, your PAN becomes inactive. However, certain individuals are exempt.

For the process and benefits, check our guide. For further assistance, contact the Income Tax Department or UIDAI.

FAQs:

Who needs to link Aadhar and PAN?
Every individual with a PAN since July 1, 2017, and eligible for Aadhaar must link them.

Who is exempt from Aadhaar-PAN linkage?
Exemptions include residents of Assam, Jammu and Kashmir, Meghalaya, non-residents, those aged 80 or more, and non-citizens of India.

How to link Aadhaar and PAN?
Use the e-Filing portal; registered users log in, go to ‘Profile Settings,’ select ‘Link Aadhaar,’ and enter details. Unregistered users click ‘Link Aadhaar’ on the portal homepage.

How to pay the prescribed fee for PAN-Aadhaar Linkage?
Use the e-Pay Tax feature on the e-Filing Portal after clicking ‘Link Aadhaar’ in the Quick Links section.

What’s the last date to link PAN with Aadhaar?
June 30, 2023. After this, PAN becomes inactive for those who don’t link, affecting financial transactions. Exempted individuals are not affected.