If you need you file you income tax return, you need to link Aadhaar to PAN card. To ensure timely filing of taxes, enhance compliance, and prevent misuse, the Income Tax Department has made it compulsory for taxpayers to complete the income tax-Aadhaar-PAN link. By linking Aadhaar to PAN card, tax evasion can be reduced to a great extent. If taxpayers do not link these two mandatory identification numbers, they may face penalties and restrictions when filing their returns.
The linking process can be easily done by sending an SMS or through the income tax e-filing portal on the Internet. So, it becomes mandatory to link Aadhaar to PAN card to file income tax returns.
Linking Aadhaar with PAN to file income tax returns
Section 139AA of the Income Tax Act makes it mandatory to link PAN with Aadhaar card and the Aadhaar number must be mentioned with the income tax return. To avail facilities such as opening a bank account, applying for a passport, and availing subsidies, it is compulsory to submit PAN and Aadhaar details. It is difficult to avail government services or employment if an individual does not have Aadhaar and PAN cards linked. Unless the person qualifies for an exemption, an income tax-Aadhaar-PAN link is necessary to file income tax returns.
Go to the home page of Income Tax e-filing, select the icon ‘Link Aadhaar,’ enter details like your PAN number, Aadhaar number, and other related fields and click on the ‘Link’ button for the process of Aadhaar PAN card link.
Procedure for linking Aadhaar card and PAN card
The government has mandated that your Aadhaar and PAN cards be linked to reduce instances of tax evasion. Linking Aadhaar to PAN card is a simple process that can be completed both online and offline.
Online process
Step 1 :- Go to the income tax e-filing portal
Visit https://www.incometax.gov.in, the official website for income tax e-filing. Users should create an account on the site using their PAN number if they have not done so.
Step 2 :- Enter your account information
To log in, you must enter the login information after you sign up. After login, in the profile settings area, select the “Link Aadhaar” tab.
Step 3 :- Enter the details
Fill in details such as your name as printed on your Aadhaar card, your PAN number, and your Aadhaar number.
Step 4 :- Procedure for verification
After completing the CAPTCHA verification process, click on the “Link Aadhaar” button. If you have provided the right information, Aadhaar will be linked to PAN successfully.
Step 5 :- Validation
The message ‘Aadhaar and PAN are correctly linked’ appears on the screen as soon as the linking is successful.
Offline procedure
Step 1 :- Go to a service centre for PAN
Visit a PAN Service Centre to link your Aadhaar and PAN. Complete Annexure-I, the necessary form, and send it along with copies of your Aadhaar and PAN cards.
Step 2 :- Verification using Biometrics
It is necessary to use biometric authentication for offline connectivity.
Step 3 :- Processing
Once the linking procedure is completed, you will receive a confirmation message upon successful verification of your Aadhaar PAN link status.
To avoid any issues during the linking process, ensure that the information on your Aadhaar and PAN card like name, date of birth, gender etc match.
Watch this video to learn how to link Aadhaar card with PAN card
The Government of India has mandated that all citizens must link Aadhaar to PAN card to check tax evasion and broaden the tax base. Watching an instructional video would make the process of linking your Aadhaar with a PAN card simple and easy to grasp. The government of India’s income tax portal has uploaded a video that details the process to help taxpayers link Aadhaar to PAN card. https://www.incometax.gov.in/iec/foportal/help/all-topics/videos/how-link-aadhar-pan
Penalty for delayed linking of PAN and Aadhaar card
If you fail to complete your Aadhaar PAN card link, your PAN becomes invalid, which may have financial and legal consequences. Income tax return filing for taxpayers cannot be done and any returns pending or refunds due will not be processed. Aadhaar-PAN link penalty will be applied by levying TDS/TCS at a higher rate and a late fee of Rs. 1,000 will also apply. However, if you fail to link PAN and Aadhaar by May 31, 2024, your PAN will become inoperative and most of your financial transactions will be impacted.
Key financial tasks such as opening bank accounts, issuing debit/credit cards, and buying mutual funds will be restricted if you have non-functional PAN cards. Significant cash deposits, high-value prepaid instrument payments, and time deposits made with banks or NBFCs would all be impacted. Restrictions will apply to any transaction above ₹2,00,000 and any bank transaction exceeding ₹10,000.
Penalty for not linking your Aadhaar Card and PAN
Penalties will apply if you do not link your PAN (Permanent Account Number) with your Aadhaar Card. Currently, there is a penalty of ₹1,000 imposed on the PAN holder who fails to link PAN with Aadhaar before the prescribed date. For the two to be linked on the Income Tax website, one must make this penalty payment.
Earlier, taxpayers had to pay ₹500 to link their PAN to Aadhaar. However, as of June 30, 2023, they must finish the linking process to avoid penalties. To continue the payment process, click on the e-Pay Tax tab available on the e-filing portal and then select and complete the payment through the payment gateway available on the portal such as debit cards, Internet banking, NEFT/RTGS or any other available mode of payment.
Ensure that you have a working Aadhaar, PAN, and mobile number before you begin the process. Considering these, it is essential to complete the linking on time.
Conclusion
Filing an Income Tax Return (ITR) in India requires an Aadhaar PAN card link. It ensures that your tax records are accurate. To find the income-tax-Aadhaar-PAN card link, one can visit the Income Tax filing website or mobile application. Fill in the following information: Enter your Name, PAN, and Aadhaar number as it appears on the Aadhaar Card. Usually, verification happens instantly. Visit the Aadhaar website or the PAN service provider to update any inaccurate information. A successful connection makes completing your ITR easier and ensures that you conform to tax laws. To prevent any last-minute problems, make sure this linking is completed well in advance of the tax filing deadline.
