December 31, 2019 is the last date to link your PAN with Aadhaar. Earlier, this deadline was September 30.
Now, if a taxpayer fails to meet the new deadline, their PAN would be rendered "inoperative".
Here is what it means, the various benefits of linking your PAN with Aadhaar, and how you can link these two documents.
Firstly, here's what an 'inoperative' PAN means
If your PAN isn't linked with Aadhaar by said deadline, then it shall be deemed inoperative.
However, the implications of possessing an inoperative PAN have not been clarified by the government till now.
In all likelihood, once a person's PAN becomes inoperative, it will be treated as if the individual doesn't hold a PAN, barring them from conducting transactions that require quoting of PAN.
What are the benefits of linking PAN with Aadhaar
Once your Aadhaar is linked with PAN, you cannot apply for more PAN cards, thereby reducing/eliminating chances of duplicacy of PAN. This further lowers the possibility of banking and other financial frauds.
The linkage also eases the process of income tax filing as the taxpayer need not show the receipt of ITR to Income tax department/authorities.
Now, to link PAN with Aadhaar online, log on to the Income Tax e-portal.
Next, under the 'Quick Links' section, click on 'Link Aadhaar.'
Enter details such as Aadhaar number, PAN, name, and captcha code.
Submit the details, click on 'Link Aadhaar', and you're done.
After successful verification from UIDAI, linkage will be confirmed.
Notably, you can also link the two documents via SMS.
You can also link your PAN and Aadhaar via SMS
To link your PAN and Aadhaar via SMS mode, type a text message in this format: UIDPAN (space) 12-digit Aadhaar number (space) 10-digit PAN, and send to 567678 or 56161 from your Aadhaar-registered mobile number.