PAN Aadhaar Link : How and Why ?

By Jaya Kumari Income Tax Articles March 30, 2022 4 comments

The last date for linking Aadhaar with PAN as extender earlier is 31st March 2022.

Anyone having PAN and Aadhaar, must inform the Income Tax Department by linking PAN to Aadhaar. Failing which your PAN card will become inoperative.

Methods to link PAN and Aadhaar

Online Linking of Aadhaar and PAN

1. without registering on Income tax portal: Anyone not having registration on the income tax portal ( i.e those who do not file income tax return) can follow the following steps.

Follow the link https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar

Enter the required details: PAN, Aadhaar, Name as per Aadhaar and Mobile number
In case if only year of birth is mentioned in your Aadhaar card, then select the check box asking “I have only year of birth in Aadhaar card”.
Check on the mandatory “I agree to validate my Aadhaar details”
Click on ” Link Aadhaar” to proceed.
You will either get a dialog box informing you that your Aadhaar and PAN are already linked or you will b directed to the verification page
You will get a six digit One time password on your mobile number.
Enter the OTP on the verification page and click ” Validate”
Linkage in complete

2. By login into your account on Income tax Portal.

Login into your account at https://www.incometax.gov.in/iec/foportal using PAN as user ID and password
Go to ” My profile”
Select ” Link Aadhaar” under “Personal Details”
Enter required details
Enter Aadhaar number and name as per Aadhaar. Verify the details on the screen with the ones mentioned on your Aadhaar card
Give your consent by clicking on the check box ‘I agree to validate my Aadhaar details’
In case if only year of birth is mentioned in your Aadhaar card, then select the check box asking “I have only year of birth in Aadhaar card”
Click on ‘Link Aadhaar’ button
You will get a pop-up message informing and confirming the Aadhaar- PAN linkage

3. Linking via SMS

Send SMS to either 567678 or 56161
Use the following format UIDPAN<SPACE><12 digit Aadhaar><Space><10 digit PAN>
Example: UIDPAN 123456789123 ACPPM3154M

4. Offline Mode

One can also opt for offline linkage mode. For this one will have to visit a service centre of PAN service provider, NSDL or UTIITSL and will be required to fill in the form ‘Annexure-I’ along with the supporting documents i.e. copy of PAN card and Aadhaar card.

Offline Linkage mode is not free of cost. Prescribed fees will be charged and Biometric Authentication may be required in case of major mismatch between PAN and Aadhaar

What if last date to get Aadhaar and PAN linked (Presently 31st March 2022) expire ?

One can link Aadhaar and PAN even after the end of deadline but may be required to pay the penalty which cannot exceed INR 1,000 under section 234H. Govt. has not yet notified the amount of penalty. Once the Aadhaar and PAN get linked, PAN will again become operative.

Points to remember

1. Following person are not needed to link Aadhaar and PAN

A person who is not a citizen of India
Non Resident Indian as per Income Tax Act, 1961
Individual above 80 years on age
Person residing in the States of Assam, Jammu and Kashmir, and Meghalaya

2. In case of mismatch of date of birth between PAN and Aadhaar Data, one needs to update the Aadhaar or else Aadhaar OTP can not be generated

3. You may need to lodge a request (e-Nivaran) or contact the e-Filing Helpdesk to un-link Aadhaar and PAN if:

a) your Aadhaar is linked with some other PAN

b) your PAN is linked with some other Aadhaar

Consequences of not linking PAN and Aadhaar

1. PAN will become inoperative

2. Any financial transaction or any transaction requiring mandatory quoting of PAN could not be conducted. For example: Opening bank accounts, Investment activities, Application for Lower tax deduction, Subsidy on LPG cylinder etc.

3. Higher TDS rate will be applicable as in the case of person no having PAN

4. As per section 272B, a penalty of INR 10,000 may be levied

5. One can link aadhaar and PAN even after the end of deadline but will be required to pay the penalty which cannot exceed INR 1000 under section 234H. Govt. has not yet notified the amount of penalty.

Disclaimer : This article is solely for educational purpose and cannot be construed as legal and professional opinion. It is based on the interpretation of the author and are not binding on any tax authority. Author is not responsible for any loss occurred to any person acting or refraining from acting as a result of any material in this article.