Link PAN Card with Aadhaar

Linking your PAN card with Aadhaar is mandatory under Indian law. Failure to do so will render your PAN invalid, as per Section 139AA of the Income Tax Act. This can prevent your income tax return (ITR) from being processed and delay tax refunds. Additionally, for banking transactions over ₹50,000, a linked PAN is essential. Without it, you won’t be able to invest in mutual funds, stocks, or open bank accounts. The Government of India established a deadline of 30th June 2023 for this linkage, after which your PAN will become ‘inoperative,’ complicating your financial dealings.

how you can link your PAN card with your Aadhaar card using both methods:

Linking PAN card with an Aadhaar card is very simple and you can link your Aadhaar number with PAN in any of the two ways:

How to Link PAN Card with Aadhaar ?

• Using the SMS facility
• Using facility on e-Filing portal https://incometaxindiaefiling.gov.in

To link PAN with Aadhaar by SMS, follow the procedures below:

Latest Notifications : Click here.

• Enter UIDPAN<12-digit Aadhaar><10-digit PAN> on your phone.
• Send it to 56161 or 567678.

Example: UIDPAN 123456789123 ABCDE1234F.

How can I use the income tax e-filing website to link my PAN card with Aadhaar?
Here's how to use the Income Tax e-filing website to link your pan card and Aadhaar.
First Step: Visit the website www.incometax.gov.in. To access the "Our Services" menu, scroll down.
Select the "Link Aadhaar" option in step two. It will open a new page.

• Type in your credentials.

# Aadhaar number,

# PAN,

# Name precisely as it appears on the Aadhaar card, and

# Mobile number

Choose the "I have only year of birth in Aadhaar card" check box if your Aadhaar card only has your birth year.
Select "I agree to validate my Aadhaar details" by checking the box. To continue with Aadhaar connectivity, this check box must be checked.
In step three, select the "Link Aadhar" tab.

• A six-digit one-time password will be sent to your mobile number. On the screen's verification page, enter this OTP. After entering your OTP, click the "Validate" button.

How Can I Verify the PAN Card Link Status with Aadhaar ?

Here are the essential methods to determine whether or not your PAN card has been successfully connected to Aadhaar.
Go to Aadhaar Status on the official website of the Income Tax Department, or click the link incometaxindiaefiling.gov.in/aadhaarstatus.
Step 2: Enter your Aadhaar number and PAN.
Step 3: After that, select "View Link Aadhaar Status."
Aadhaar link status pan
Step 4: "Your PAN is linked to Aadhaar number " will appear if it has previously been linked.

Failing to link your Aadhaar card with your PAN card by the deadline of June 30, 2023, has several significant consequences:

• Inoperability of PAN Card: An individual who does not link the two will have their PAN card become inoperative. This means that the PAN cannot be used for any financial transactions or services requiring KYC, such as opening bank accounts, applying for loans, or using e-wallets.
• Impact on Banking Services: If your PAN is inoperative, the interest earned on savings accounts will be subject to higher Tax Deducted at Source (TDS). The TDS rate will increase from 10% to 20% for interest earned beyond Rs 10,000 annually if your PAN is not linked.
• Penalty for Late Linking: Even after missing the deadline, you can still link your PAN with Aadhaar, but a penalty of Rs 1,000 will apply. If you fail to do so, a penalty of up to Rs 10,000 may be imposed under Section 272B of the Income Tax Act.
• Legal Implications: An inoperative PAN will be considered as not furnished as required by law, leading to further complications in financial transactions and potential legal consequences.

Overall, it is crucial to link your PAN with Aadhaar to avoid these adverse effects on financial and legal matters.