Why do you need to link PAN card with Aadhaar
Your PAN card holds a crucial significance, and linking it with your Aadhaar card is mandatory if you want your income tax return to be processed. In addition, you should have your PAN and Aadhaar linked, in order to carry out a banking transaction above Rs. 50,000. Here's how you can link your PAN with your Aadhaar in a few easy steps.
Why does this story matter?
- The Government of India has made linking Aadhaar to the PAN mandatory for a large section of the working population.
- As per Section 139AA of the Income Tax Act 1961, every person eligible to obtain an Aadhaar and has PAN must link their Aadhaar with their PAN by March 31, 2023.
- If one fails to do so, their PAN will become "inoperative."
What if your PAN card becomes inoperative?
If your PAN card becomes inoperative, you will no longer be able to use it to file returns. Additionally, TDS/TCS deduction will attract a higher rate. You won't be able to avail banking services such as depositing (or booking a Fixed Deposit) above Rs. 50,000, obtaining a new Debit/Credit Card, investing/redeeming your Mutual Funds, or purchasing foreign currency beyond Rs. 50,000.
How to check if your PAN and Aadhaar are linked?
To check the status of your PAN-Aadhaar linkage, head to the Income Tax e-filing portal. Under the quick links on the homepage, click on the "Link Aadhaar Status" option. Enter your PAN and Aadhaar number and click "View Link Aadhaar Status." If your PAN and Aadhaar are not linked, you will see a pop-up stating "PAN not linked with Aadhaar."
You need to proceed with the payment first
On the Income Tax e-Filing website, click on "Link Aadhaar." Enter your PAN and Aadhaar number, and click on "Validate." A pop-up will appear on your screen if the payment details are not verified. Proceed by clicking on "Continue to pay on NSDL portal" to complete the payment of Rs. 1,000. You can apply for PAN-Aadhaar linkage after 4-5 working days.
How to link your PAN with Aadhaar?
Once you have made the payment, click on the Aadhaar Link tab. Enter your PAN and Aadhaar number, and click on "Validate." When you see a pop-up message "Your payment details are verified," click on "Continue" to proceed. Enter the needed details, click the 'Link Aadhaar' button, fill in the 6-digit OTP, and click on "Validate" to submit the PAN-Aadhaar linkage request.
PAN-Aadhaar linkage won't be successful in case of information mismatch
PAN and Aadhaar linking will be successful only if the details in both documents match. In case of errors such as spelling mistakes, make corrections to your Aadhaar by visiting your nearby Aadhaar enrolment center. For rectification of details on the PAN card, visit NSDL (Protean) page. Here, apply for corrections and submit signed digital documents to get your PAN details updated.