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Why is linking of Aadhaar and PAN important?
Linking of Aadhaar and PAN has been made mandatory by government. The importance of this mandate can be rightly validated by following points-
- There are many financial transactions where quoting PAN is compulsory like, purchase of gold, property registration etc. Similarly Aadhaar is widely used for various transactions. By linking of Aadhaar and PAN scope of tax evasion can be reduced.
- Government is emphasising on linking of Aadhaar and PAN as it will help them in tracing financial transactions back to the person doing those transactions.
- One person can have only Aadhaar Card, but there may be cases where people have fake PAN Cards, such cases can be tracked with this move.
- If PAN and Aadhaar are linked, verification of IT returns becomes very easy as with just an OTP return can be e-verified and there is no hassle of sending the return by post.
Consequences of not linking Aadhaar and PAN
As per Finance Budget 2021, linking of Aadhaar and PAN has been made mandatory. Those failing to do the same before the due date will not be allowed to file their returns and their PAN will be rendered inoperative. The due date as per recent announcements is 30th September, 2021.
- If linking of PAN and Aadhaar is not done in time, the PAN will be made inoperative leading to difficulty in doing transactions where PAN card is to be quoted.
- Inoperative PAN will be as good as no PAN, i.e. higher TDS deductions. Banks have also published on their websites that it may lead to problem in using banking facilities as well.
- Providing Aadhaar has been made mandatory for filing of return as well as applying for a new PAN Card. So a person not linking PAN and Aadhaar will not be able to file his return.
- If one fails to link PAN and Aadhaar, then such person will be liable to pay a late fees of Rs.1000/- after the due date i.e. 30.09.2021.
So to avoid all this trouble let us learn how to link PAN/Aadhaar.
How to link Aadhaar and PAN in new e-filing portal?
Linking of PAN and Aadhaar can be done from home screen itself; you need not even log-in to the portal. To link PAN and Aadhaar in the new e-filing portal following steps need to be followed-
- Proceed to the new e-filing portal “incometax.gov.in”
- Scroll down the screen to “Our Services” on home page itself
- Select “Link Aadhaar-Link PAN with Aadhaar” option.
- The next screen will require you to enter following details-
- PAN Number
- Aadhaar Card Number
- Name as per Aadhaar
- Mobile Number
- In case of only year on Aadhaar Card, tick the checkbox asking for same
- Tick the checkbox, I agree to validate my Aadhaar details
- Click on “Link Aadhaar”
Please make sure that name exactly matches with name on Aadhaar Card. Details like name, gender, date of birth is validated with data in UIDAI database.
- Next screen will ask for 6 digit OTP, which will be sent on registered mobile number. The OTP will be valid for 15 minutes. In case OTP not received, click on resend OTP option.
- After entering the 6-digit OTP, click on “Validate” option.
- After the successful validation, a pop-up window will appear with a message that request for linking of PAN and Aadhaar has been received.
How to check status of Aadhaar and PAN link?
Status of Aadhaar and PAN linking can be checked both with and without login. Let us see both methods one by one.
- Without Login
- Click on “Link Aadhaar- Know about your PAN- Aadhaar Status” under Our services on the home-page.
- Next screen asks you about your PAN and Aadhaar Number.
- After entering both, click on “View Link Aadhaar Status”.
- A pop-up window will appear with a message “ Your PAN XXXXXXXXXX is linked with Aadhaar number XXXX XXXX XXXX”
- This is confirmation that your Aadhaar and PAN are linked.
- With Login
- Click on “Login” Button available on top-right of the home page.
- Enter your User Name and Password and login to the portal.
- Click on your Name on the Top Right corner
- Select “My profile” option
- Next to your Aadhaar number will be written “Linked” with a green tick mark.
- This confirms that your Aadhaar and PAN are linked.
Conclusion
Income Tax Department launched the e-filing portal 2.0 recently which is more user-friendly. As we saw the above procedure, it is pretty easy to link Aadhaar and PAN. Interesting fact is that while Log in also Aadhaar can be entered as User Name. So given the easy procedure and time available up to 30.09.2021, it is better to Link PAN and Aadhaar in time to avoid unnecessary late fees and inconvenience. Let us not sit and wait for another extension of time line from government. Linking of PAN and Aadhaar is mandatory for all people, hence it is good not to delay and complete the process timely.
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