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PAN Aadhaar Link: Step-by-step Process

by | Jun 2, 2024 | Income Tax | 0 comments

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Important Keyword: PAN Aadhaar Link, Income Tax Account, Income Tax Website, Link Aadhaar PAN, PAN.

It’s imperative to link your PAN and valid Aadhaar number by June 30, 2023, as mandated by the government. Failure to do so will render your PAN “inoperative” starting from July 1, 2023, which entails certain consequences.

Latest Update

The deadline for PAN Aadhaar Link has seen several extensions, from March 31, 2022, to March 31, 2023, and now extended further to June 30, 2023. However, after this latest extension, taxpayers who fail to link their PAN and Aadhaar by July 1, 2023, will face consequences while their PAN remains inoperative:

  1. No Refunds: No refunds will be issued against such PAN during this period.
  2. No Interest on Refunds: Interest will not be payable on any refund due during this period.
  3. Higher TDS/TCS Rates: TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) deductions will be at a higher rate, as specified in the Income Tax Act.

It’s important to note that this additional window for PAN Aadhaar Link comes with a nominal fee, the amount of which depends on the date on which the linking is completed.

Linking CompletedApplicable Fee
Before June 30, 2023₹500
After July 1, 2023₹1,000

The PAN (Permanent Account Number) and Aadhaar are vital identification tools issued by the government, each serving distinct purposes. Linking these two unique identification numbers holds significance for both legal compliance and operational efficiency.

PAN:

PAN, a 10-digit alphanumeric code issued by the Income Tax Department, serves as a crucial tool for tax-related transactions and identity verification.

Aadhaar:

Aadhaar, a 12-digit unique number issued by the UIDAI, is aimed at providing universal identity acceptance across India, encompassing biometric and demographic information.

  1. Comprehensive Activity Trail: Linking Aadhaar with PAN streamlines the tracking of all financial transactions, aiding the Income Tax Department in monitoring activities efficiently.
  2. Easy E-Verification: Taxpayers can seamlessly e-verify their returns without digital signatures, enhancing the tax filing process.
  3. Prevention of Duplicate PANs: By linking PAN with Aadhaar, the government can identify individuals with multiple PAN cards, facilitating streamlined governance.
  4. Enhanced Fraud Prevention: The integration of PAN and Aadhaar enables better oversight of transactions, reducing the scope for fraudulent activities and tax evasion.

Exemptions from Mandatory Linking:

Certain categories of individuals, such as residents of specific states, non-resident Indians (NRIs), and individuals above the age of 80, are exempt from the mandatory linking of Aadhaar with PAN.

Consequences of Non-Linking:

Failure to link PAN with Aadhaar can result in significant consequences, including rendering the PAN inoperative, higher tax deductions, penalties, and restrictions on financial transactions.

The linking process involves two steps: payment of a prescribed fee on the Income Tax Portal and submission of the PAN-Aadhaar link request. Taxpayers can complete this process conveniently through the Income Tax e-filing portal.

The request can be made in 2 ways:

  1. Income Tax Portal – Pre Login/Post Login
  2. Via SMS

Steps to link PAN Aadhaar on the Income Tax portal (Pre Login)

  1. Visit the e-Filing portal
    Navigate to the Income tax e-filing portal
  2. Click on “Link Aadhaar” from the left side nav
    On your Dashboard, under the Link Aadhaar to PAN option, click Link
    Alternatively, go to ‘My Profile > Personal Details and select ‘Link Aadhaar


    link aadhaar menu on itd portal
  3. Enter your PAN & Aadhaar details
    Enter the required details such as PAN, Aadhaar, name as per Aadhaar, and a valid mobile number.

    Note: It is mandatory to give your consent by selecting the check box ‘I agree to validate my Aadhaar details’. In case only your year of birth is mentioned in your Aadhaar card, then select the check box asking I have only year of birth on Aadhaar card.


    link pan aadhaar tool pre login
  4. Success Message
    On success, you will get a message about your Aadhaar-PAN linking request being sent to UIDAI. Once the application is successful, you can verify the status of the application after 2-3 days.

    www.incometax.gov.in - Success Message of PAN Aadhaar Link

Steps to link PAN Aadhaar on the Income Tax portal (Post Login)

Step 1: Visit the e-Filing portal and log in using your IT portal credentials

Step 2: On your Dashboard, under the Link Aadhaar to PAN option, click Link
Alternatively, go to ‘My Profile > Personal Details and select ‘Link Aadhaar

Step 3: Next, enter the required details such as PAN, Aadhaar, name as per Aadhaar, and a valid mobile number.

Note: It is mandatory to give your consent by selecting the check box ‘I agree to validate my Aadhaar details’. In case only the year of birth is mentioned in your Aadhaar card, then select the check box asking ‘I have only year of birth in Aadhaar card’.

www.incometax.gov.in - Enter Valid Details to Link PAN Aadhaar

Step 4: On success, you will get a message about your Aadhaar-PAN linking request being sent to UIDAI. Once the application if successful, you can verify the status after 2-3 days.

www.incometax.gov.in - Success Message of PAN Aadhaar Link

Individuals can conveniently link their PAN (Permanent Account Number) with Aadhaar using the SMS facility. Follow these simple steps:

Compose Message:
Type a message in the following format:
UIDPAN <12-digit Aadhaar> <10-digit PAN>
Example Message:
For instance, if your Aadhaar number is 256514531487 and PAN is ABCDP5858X, your message should be:
UIDPAN 256514531487 ABCDP5858X
Send Message:
Send the composed message to either 56161 or 567678 from your registered mobile number.

Confirmation:
After sending the message, you will receive a confirmation message acknowledging the successful linkage of your PAN and Aadhaar.

Read More: Aadhaar: A universal Indian ID and why should you have one

Web Stories: Aadhaar: A universal Indian ID and why should you have one

Official Income Tax Return filing website: https://incometaxindia.gov.in/

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