PAN-Aadhaar linking Key Points: Know the latest alerts, Importance and Process to Apply

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PAN-Aadhaar linking deadline: For those who are yet to link their PAN(PAN CARD) with Aadhaar, there is good news for them as the deadline has been extended till June 30.

However, the earlier deadline(to link PAN with Aadhar) was March 31, 2020, But the Finance Ministry on 24 March 2020 took the decision to extend the Aadhar-PAN linking date amid Coronavirus lockdown.

For those who are yet to link their PAN with Aadhaar, this extension will come as a relief as not linking the two will lead to the PAN becoming ‘inoperative’, as per current income tax laws.

Why Aadhar-PAN linking is Important

  • It is mandatory for all citizens to have linked Aadhar-PAN
  • The Supreme Court (SC) has allowed linking of PAN with Aadhaar while reading out its verdict on the constitutional validity of Aadhaar. The apex court also said that quoting Aadhaar number is mandatory to file an income tax return (ITR) and for applying for a new PAN.
  • If you do not link your PAN with your Aadhaar, then your PAN will become inoperative
  • According to chartered accountants, an individual cannot file his/her ITR without linking the two first.

The government in the budget 2017 had introduced a law making mandatory for every individual having PAN to link with Aadhaar. Here are 3 ways to do it.
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How to link PAN with Aadhaar

If you are already filing tax returns, chances are that your PAN is already linked with Aadhaar if you have mentioned it previously while filing ITR in the previous assessment years. It is done by the income tax department in case details of both are already available with it.
You can check if your Aadhaar is already linked to your PAN by visiting the income tax e-filing website www.incometaxindiaefiling.gov.in

The screen will show the message, ‘Your PAN is already linked to Aadhaar number XXXX1234’.

In case your PAN is not linked to Aadhaar then a form will appear where you will be required to enter details – name, date of birth and gender as per PAN records. Next to your Aadhaar number. Click on submit after entering the captcha code appearing on the screen.

For not- registered users

If you don’t want to register yourself at the e-filing website, there is another way using which you can link your PAN and Aadhaar. A hyperlink has been provided at the homepage of the e-filing website and also on the income tax website http://incometaxindia.gov.in/Pages/default.aspx.

Just click on ‘Link Aadhaar’ on the e-filing website. A new form will appear where you are required to enter details – PAN, Aadhaar number, Name as per Aadhaar.

If your Aadhaar card has the only year of birth, then you must also tick the option: ‘I have the only year of birth in Aadhaar card’

Enter the captcha code and click on submit. Once submitted successfully, a message will be displayed on your screen showing your PAN is successfully linked to Aadhaar.

Linking PAN with Aadhaar by sending an SMS

The PAN can be linked with the Aadhaar number by sending an SMS to 567678 or 56161 from the registered mobile number. In order to do so, you need to type UIDPAN<12-digit Aadhaar><10-digit PAN> and send it.

  • For example, if your Aadhaar number is 111122223333 and PAN is AAAPA9999Q. Then you are required to send SMS to 567678 or 56161 as UIDPAN 111122223333 AAAPA9999Q
Manual linking by filing up a form 

For this, You have to visit the service center of PAN service provider, NSDL or UTIITSL. You will be required to fill in the form ‘Annexure-I’ along with the supporting documents i.e. copy of PAN card and Aadhaar card.

For any correction in the PAN details, the fee charged is Rs 110. On the other hand, for correcting Aadhaar details, the prescribed fee is Rs 25.

Meaning of ‘inoperative PAN’
According to a CBDT notification dated February 13, 2020, the term ‘inoperative PAN’ would mean that an individual does not have a PAN. Further, he/ she will not be able to make financial transactions where PAN is mandatorily required to be intimated or quoted as per income tax laws.

As per income tax laws, an individual having an inoperative PAN would be assumed not to have a PAN. Further, it would be deemed that he/she has not quoted/furnished/intimated the same wherever it is mandatorily required. Such an individual may be liable for penal consequences i.e. penalty of Rs 10,000 under the Income-tax Act, 1961.

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