PAN Card Rule changed: The Central Board of Direct Taxes (CBDT) has issued a final warning to people linking PAN with Aadhaar in an effort to streamline financial transactions and prevent tax evasion. The government has asked all taxpayers to comply with this requirement before March 31, 2023, with a penalty of Rs 1,000. If not linked by the due date, financial transactions will stop as your PAN card will become inactive.
Even the Securities and Exchange Board of India (SEBI) has urged linking of both the identity cards. Said that if not linked then those people will not be able to initiate any transaction in financial markets like NSE and BSE.
If you have not linked Aadhaar with PAN yet and have some queries regarding the process, read further. We have tried to answer some of the most common questions related to PAN Aadhaar linking to help you understand why and how to initiate the PAN and Aadhaar linking process.
Why was linking made mandatory?
The Income Tax Department of India has mandated linking of Aadhaar with PAN to address the issue of duplication of PAN. The IT department identified cases where one person had multiple PANs, or where one PAN number was allotted to multiple persons. This resulted in mistakes in the tax collection process and made it difficult to identify and track taxpayers. Hence in order to establish a robust method of de-duplication of PAN database, Aadhaar-PAN linking was made mandatory.
PAN has to be linked with Aadhaar card
In March 2022, the Central Board of Direct Taxes (CBDT) issued a circular stating that it is mandatory for persons who were allotted PAN on or before July 1, 2017, to link their Aadhaar numbers with their PANs. Is. It is necessary to link Aadhaar and PAN card before March 31, 2023. Failure to do so will result in deactivation of the PAN.
Who is exempted from Aadhaar-PAN linking
The mandate applies to all Indian citizens, however, there are certain categories of persons who are exempted from Aadhaar-PAN linking. Citizens aged 80 years and above, non-residents as per the Income Tax Act and people who are not citizens of India but are living in the country are exempted from Aadhaar-PAN linking.
Aadhaar-PAN Link Last Date & Penalty Fee
The last date to link Aadhaar with PAN free of cost was March 31, 2022. After that the government extended the deadline but now it can be linked only after paying the fine fee. Citizens will now have to pay a fine of Rs 1,000 for linking Aadhaar with PAN by March 31, 2023. And if this is not done after the deadline, the PAN card will become inoperative, which means it will not be valid for doing any finance related process like filing ITR returns.
Check whether PAN and Aadhaar are linked or not
- Visit incometaxindiaefiling.gov.in/aadhaarstatus
- Enter PAN and Aadhaar number
- Click on ‘View Link Aadhaar Status’
- Linking status will be displayed in the next screen
How to link pan card with aadhaar card
If your PAN and Aadhaar are not linked, you can link them through SMS or online. To link PAN with Aadhaar through SMS, send SMS to either 567678 or 56161 using your registered phone number.
You can link PAN with Aadhaar online by visiting the Income Tax portal and paying the applicable late fee or Rs 1000.
- Visit the official website of the Income Tax Department of India to link your PAN card with Aadhaar card: incometaxindiaefiling.gov.in
- Register your ID if not already done.
- Login to the portal using your User ID, Password and Date of Birth. The user ID to login will be your PAN (Permanent Account Number).
- You will see a pop-up window to link your PAN with Aadhaar.
- To link, go to ‘Profile Settings’ on the menu bar and click on ‘Link Aadhaar’ on the homepage.
- Enter your PAN number, Aadhaar number and your name as mentioned on your Aadhaar card.
- Tick the box ‘I have only year of birth in Aadhaar card’, if applicable.
- Enter the captcha code displayed on the screen to verify.
- Click on the ‘Link Aadhaar’ button.
- If the details entered by you match with your PAN and Aadhaar records. If your details match, click on the ‘link now’ button. Your PAN card will be successfully linked with your Aadhaar card.
- After a successful linking process, a pop-up message will appear telling you that your Aadhaar has been successfully linked with your PAN.
