PAN card and Aadhaar: It has become a mandatory process to link your PAN with Aadhaar. This is an important process because this will allow your income tax returns to be processed. Linking of your PAN with Aadhaar is also required if you are carrying out banking transactions for amount of Rs.50,000 and above.
According to the latest updates, the last date to link Aadhaar with PAN has been extended to June 30, and it is not yet clear if this deadline will be extended any further. If one still has not linked their Aadhaar with PAN by this deadline, penal action might follow.
Importance of Linking PAN Card with Aadhaar Card
Both the PAN card as well as the Aadhaar card are unique identification cards that serve as proof of identity that are necessary for registration and verification purposes.
The government has urged all entities to link their PAN cards with their Aadhaar cards. This is being done for the following purposes:
1.Prevent Tax Evasion:
By linking the Aadhaar and PAN cards, the government will be able to keep tabs on the taxable transactions of a particular individual or entity, whose identity and address will be verified by his Aadhaar card. This will effectively mean that every taxable transaction or activity will be recorded by the government.
As a result, the government will already have a detailed record of all the financial transactions that would attract tax for each entity, making tax evasion a thing of the past.
2.Multiple PAN Cards:
Another reason for linking PAN with Aadhaar is to reduce the occurrence of individuals or entities applying for multiple PAN cards in an effort to defraud the government and avoid paying taxes.
By applying for more than one PAN card, an entity can use one of the cards for a certain set of financial transactions and pay taxes applicable for those. Meanwhile, the other PAN card can be used for accounts or transactions that the entity wishes to conceal from the Income Tax department, thereby avoiding paying tax on them.
By linking the PAN and Aadhaar card, the government will be able to link the identity of an entity through his/her Aadhaar card, and subsequently have details of all financial transactions made through the linked PAN card. If there are multiple PAN cards registered under the same name, the government will be able to identify the same and take corrective action.
1. Linking PAN and Aadhaar using the income tax portal:
To link the Aadhaar card with the PAN number using the official portal of the income tax department, follow these five simple steps:
Step 1: Visit the official e-filing portal of the income tax department: http://incometaxindiaefiling.gov.in/
Step 2: On the homepage, you will find a series of ‘Quick Links’ to the left. Find the ‘Link Aadhaar’ section and click on it. It should be the second option from the top.
Step 3: On the next page, you will be given a form to fill. Carefully put in the PAN number, Aadhaar number, name as per the Aadhaar card. Check the ‘I have only year of birth in Aadhaar Card’, if suitable. Don’t forget to check in the ‘I agree to validate my Aadhaar details with UIDAI’ box before proceeding.
Step 4: Enter the captcha code as provided in the image. Visually challenged persons can also request a one-time password (OTP) if the image captcha seems too complicated.
Step 5: Click on the ‘Link Aadhaar’ option. The income tax department will validate your details, thereafter your PAN-Aadhaar linking will be completed.
2. Linking PAN with Aadhaar by Sending an SMS
To link PAN with Aadhaar by sending an SMS. You need to follow the steps mentioned below:
Step 1: Type UIDPAN<12-digit Aadhaar><10-digit PAN> on your mobile
Step 2: Send it to 567678 or 56161.