What is Capital Gains Tax? - Types, Tax Rates, Calculation, Exemptions & Tax Rates

Link your Aadhaar Number and PAN card

It is now compulsory to link your PAN with Aadhaar Card. The various methods for linking PAN Aadhaar are –

1-e-Filing Income Tax Website (Without login)

2- e-Filing Income Tax Website (With login)

3- Linking through SMS

4- Link Aadhar-PAN manually

The deadline for linking Aadhaar with PAN has been extended to 31 March 2023. Non-compliance on this will result in the PAN will become inoperative from April 1, 2023. Also, individuals will have to pay a fine of Rs 1000 as a late fee for linking their PAN with their Aadhaar. Till June 30, 2022, this penalty was Rs 500.

PAN card is accepted as valid identity proof all over India. A PAN card is required for most financial transactions, and the IT department tracks your transaction via it. On the other hand Aadhaar holds all the information of an individual along with their biometric verification.

What are the benefits of Aadhaar and PAN linking?

Aadhaar-PAN linking is required for legal aspects and provides benefits like:-

For Individuals :

  • Aadhaar Card is an important document for all transactions. Linking Aadhaar and PAN provides an audit trail of all transactions to the Income tax department.
  • Starting next year, ITR filing will not be allowed until your Aadhaar-PAN is linked.
  • Filing ITR will be an easy process as it would eliminate the need for actions like submitting receipts to the IT department or e-signature. These actions will be automatically done using Aadhaar e-verification.
  • Aadhaar- PAN linking can help in preventing the cancellation of the latter.
  • Through the use of an Aadhaar Card, the requirement for other documents has been reduced to a large extent.
  • Aadhaar cards also serve the purpose of identity proof and address proof. It has made this document of great importance for individuals.

 

For Government :

 

  • With the introduction of aadhaar, tracking transactions has become easier and more effective. Aadhaar-based authentication has become a norm now.
  • It is also useful for tracking tax evaders. Aadhaar-PAN linking solved the problem of an individual having multiple PAN cards and reduced the possibility of fraudulent activities.

What is the process to link your PAN to your Aadhaar?

There are two main steps for Linking Aadhaar with PAN:

1. Payment of applicable fee on e-filing Portal either using “e-pay Tax Service” or on Protean (NSDL) Portal under major head (021) and minor head (500).

Step 1:

Click on Link Aadhaar in Quick Links section on e-filing website. Alternatively, login to e-filing portal and Click on Link Aadhar in Profile Section.

Step 2:

Enter your PAN and Aadhaar Number

Step 3:

Continue to Pay Through e-Pay Tax.

Step 4:

Enter your PAN, Confirm PAN and any Mobile number to receive OTP

Step 5:

After OTP veriification, you will be redirected to e-Pay Tax page. Click on Income Tax File.

Step 6:

Select AY (2023-24) and Type of payments as Other Receipts (500) and Continue.

Now, challan will be generated. On the next screen you have to select the mode of payment after selecting the mode of payment you will be re-directed to the Bank website where you can make the payment. In case, if you have an account in the Bank which is not Authorised for payment through “e-Pay Tax”, Protean (NSDL) Portal is the other option to proceed with payment. The process is as follows:-

Step 1:

Click on Link Aadhaar in Quick Links section on the e-filing portal.

Step 2:

Enter your PAN and Aadhaar Number.

Step 3:

Click on Continue to Pay Through e-Pay Tax

Step 4:

Click on hyperlink given on e-Pay tax page to redirect to Protean (NSDL) Portal

Step 5:

You will be redirected to Protean (NSDL) Portal. Click Proceed under Challan No./ITNS 280

Step 6:

Select Tax applicable as 0021 and Type of Payment as 500.

Step 7:

Provide Assessment Year as 2023-24 and other mandatory details and click on Proceed.

Post payment of fee you can link your Aadhaar with PAN on the e-Filing Portal.

2. Submit the Aadhaar-PAN link request

There are three ways for the linking of Aadhaar-PAN:-

  • Linking without log-in to the Income Tax website
  • Linking after log-in the Income Tax website
  • Linking of Aadhaar Number and PAN via SMS

Method 1: Linking Aadhar Card with PAN card without logging in to the income tax website

Step 1:

Visit the income tax government website , under the quick links you will get the option to link your Aadhaar with PAN.

Step 2:

Enter PAN and Aadhaar number and click ‘Validate’.

Step 3:

the 6-digit OTP received on your mobile number and validate.

Step 4:

Request for the link of Aadhaar has been submitted successfully; now you can check the Aadhaar-PAN link status.

Scenario 1:-

If your PAN and Aadhaar is already liked, you will get the pop-up on the screen. Here you can lodge a grievance or contact the e-Filing Helpdesk to un-link your Aadhaar and PAN if your PAN is linked with another Aadhaar.

Scenario 2:-

After entering PAN and Aadhaar, if you haven't linked Aadhaar-PAN, the pop-up message will be ” Payments details not found” click on Continue to Pay Through e-Pay Tax for the payment of fee as payment of fee is the pre-requisite to submit the Aadhaar PAN link request. The process is shared above.

Method 2: Linking Aadhaar Card with PAN card After logging in to the income tax website

Lorem ipsum dolor sit amet, consectetur adipisciIn order to link Aadhaar with PAN card , all you have to do is follow these 5 simple steps:-ng elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Step 1:

Visit the income tax website, and click on the login tab.

Step 2:

Fill in your details to login into the portal.

Step 3:

On the income tax dashboard, under the Link Aadhaar to PAN option, click on the 'Link’ button.

Step 4:

Enter the Aadhar and click on validate.

Method 3: Link Your Aadhar Card with PAN card via SMS

The income tax department has started SMS-based Aadhaar to PAN linking facilities to make it easier for the residents to link their IDs. It can be done by sending an SMS to either 567678 or 56161. However, you need to use your registered mobile number.

Type UIDPAN <Space><12 Digit Aadhaar No.><Space><10 Digit PAN> and send a SMS to 567678 or 56161

For Ex- UIDPAN 111122223333 AAAPS1111A

How To Check PAN And Aadhaar Link Status

To check whether your Aadhaar and PAN cards are linked or not, follow these steps:

Step 1:

On the income tax portal, head on to the “our services” tab.

Step 2:

Click on the “Link Aadhaar” card displayed on the page.

Step 3:

You will see a window where you need to fill in your PAN and Aadhaar card numbers.

Step 4:

Enter the Aadhar and click on validate.

What are the consequences of not linking your Aadhaar with PAN card?

  • Filing an Income Tax Return (ITR) may become challenging if the PAN and Aadhaar cards are not linked.
  • Pending Refunds will not be issued, and Pending ITRs will not be processed with inoperative PAN.
  • Income Tax will be deducted at a higher rate if PAN becomes invalid due to non-linking.
  • Pending proceedings, as in the case of Defective Returns, cannot be completed with an inoperative PAN.
  • Suppose the PAN Card and the Aadhaar Card are not linked. In that case, it may cause difficulties when accessing certain government services such as obtaining subsidies, applying for a passport, opening a bank account, etc.
  • Obtaining a new PAN Card may be difficult if not linked to the Aadhaar Card. The government has also made it mandatory to include the Aadhaar Card number when applying for a new PAN.
  • If the PAN Card and the Aadhaar Card are not linked, you may be subject to a penalty of up to Rs. 10,000/-

Frequently Asked Questions

Get answers to all your queries related to the linking of PAN card with Aadhaar card.

As per the latest updates if you do not link your PAN with Aadhaar by 31st March 2023, then will become inoperative.PAN holder will not be able to enter any financial transaction requiring PAN details, once it becomes inoperative.

Aadhaar is one of the unique identity launched by union government. It is embedded with your demographic (Name, Address etc.) and biometric information (fingerprints, iris pattern and photograph). It can be obtained by UIDAI ( Unique Identification Authority of India).

The purpose of this step taken by government is three fold: 1.It will restrict Multiple PAN card users 2.It will prevent tax evasion. 3.It will simplify the e-filing process of Income tax return.

Yes, as per the judgement of Supreme court (SC) passed on 26th September 2018 , linking must be done by everyone i.e. Individuals, HUFs, Companies, Firms etc. Linking has to be done even if the income is below taxable limit. Initially, Linking was needed to be done before December 31, 2017. However, to facilitate the process of linking, the last date for linking of Aadhaar with PAN was extended to 30/06/2018 and then to 31/03/2019. But now, as per the recent CBDT circular, it has been further extended till 30th September 2019.

Generally, a Non Resident Indians (NRI) does not require an Aadhaar card. However, if you have an Aadhaar card or have applied for it, then it is mandatory to link it with your PAN Card.

In case of HUF, Aadhaar Card of Karta will be linked with the PAN card of HUF. In case of other non-corporate organisations , Aadhaar card of the Principal Contact of the organisation will be linked with PAN card.

The government has made the linking mandatory and supreme court has affirmed it too. If you don't link your PAN card with Aadhaar card, then your PAN card will become invalid.

In order to link, there are 3 details that should match in both PAN card and Aadhaar card- Your Name, Date of Birth and gender. However, in case of minor mismatch in name, linking can be done through OTP Process.

No, you are not required to submit any document while linking. All you need to do is to enter your Aadhaar Number , PAN & Name as per Aadhaar and click on “Link Aadhaar” button.
As per the latest updates if you do not link your PAN with Aadhaar by 31st March 2023, then will become inoperative.PAN holder will not be able to enter any financial transaction requiring PAN details, once it becomes inoperative.
Following are the 3 methods to link PAN card with Aadhaar Card: (a) Income Tax Website (Without log-in) - You can directly link the cards by using this website (b) Income Tax Website (With log-in) - To use this option, you will have to create a account at website (c) You can also use SMS facility. Simply, type UIDPAN <12 Digit Aadhaar No.> <10 Digit PAN> and send it to 567678 or 56161 (d) Link Aadhaar and PAN manually by visiting the centers of PAN, UTIITSL, NSDL. Along with the copies of Aadhaar and PAN fill the Annexure-1.
If there is a minor mismatch in your name, you will receive an OTP on the mobile number linked to your Aadhaar card and after verification, you will be able to continue the linking process. For major mismatch, you can either update on the UIDAI website (for Aadhaar) or NSDL website (for PAN).
Updating any details on PAN or Aadhaar takes time (usually 20-25 days) as there is a particular verification and validation process of your documents.
OTP will be sent to the registered mobile number, which was submitted by you while applying for Aadhaar Card.
Don't Worry! Just fill in your details at https://eaadhaar.uidai.gov.in and you will be able to view the last four digits of your registered mobile number.
A person who already has an Aadhaar card or has applied for it, will have to quote the number in the following situations: (a) while applying for allotment of new Permanent Account Number (PAN). (b) while filing their Income Tax Return.
Earlier it was mentioned that if your Aadhaar and PAN are not linked by 31st December, 2017 then your ITR filed for F.Y 16-17 would not be processed by Income Tax Department. However, to facilitate the process of linking, the last date for linking of Aadhaar with PAN was extended to 31/03/2018 and then to 30/06/2018. . But now,as per the recent CBDT circular, it has been further extended till 31st March 2023. Notification by the government states that all the taxpayers who do have a valid PAN on 1st July 2017 are required to link their PAN with Aadhaar before 31st March 2023. Otherwise their PAN will be invalidated.
Linking Aadhaar with PAN doesn't impose a compulsion on filing ITR. You are required to file an ITR, if your Gross Taxable Income exceeds ? 2,50,000 or you fall under the various category as specified by Income Tax Department.
Yes, as per press release issued by the Income Tax Department on 31/08/2017, linking Aadhaar Card with PAN Card is mandatory for processing an ITR. However, to facilitate the process of linking, the last date for linking of Aadhaar with PAN was extended to 31/03/2018 and then to 30/06/2018 . But now, as per the recent CBDT circular, it has been further extended till 31st March 2019. Now the last date for linking PAN with Aadhaar is 30th September 2019.You will not be able to file your ITR if PAN is not linked with Aadhaar.
No, from 1st July, 2017 onwards, it is mandatory to quote your Aadhaar number in Income Tax Return. In case, you don't have Aadhaar no., then you are required to quote your Aadhaar Enrolment Number.
Yes. However, while filing your return, you have to mention the enrollment ID generated at the time of applying for Aadhaar Card. For ex : your enrolment ID is 09876/54321/12356 and time is 25/12/2017 11:00:00, you have to write 0987654321235625122017110000
To view your Date of Birth including date, month and year, you can download your Aadhaar Card at https://eaadhaar.uidai.gov.in
You may contact UIDAI Helpdesk 1800-300-1947 for updation of Aadhaar database or click on link
although you might have updated the details and got an acknowledgement, but there would be a time lag in refreshing the details. Hence, please try linking the Aadhaar after a few days.
Earlier, the deadlines to link Aadhaar with Bank account and Mobile number(SIM) was extended to 31/03/2018. as per the judgement of Supreme court (SC) passed on 26th September 2018 , there is no requirement of linking Aadhaar with the Bank Account and Mobile Number (SIM).
In Budget 2017, government introduced the necessary linking of Aadhaar with PAN.But with the several disputes and difference of opinion, Court permitted individuals to file ITR without linking.Thus, those ITR which has been filed without Aadhar PAN linking will not have any adverse effect while processing of returns.
Holding two PAN cards is not legal, as per the Income Tax law. Therefore, if you are holding two PAN cards, you should link the correct PAN card with aadhar and surrender the other one. The surrender application can be filed online or offline.Also, a letter intimating such surrender shall be written to your assessing officer.