Linking Aadhaar with PAN in India: Process, Deadline and Benefits



Introduction:

Aadhaar and PAN are two of the most crucial identity documents in India. Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI), while PAN (Permanent Account Number) is a ten-digit alphanumeric number issued by the Income Tax Department of India. Both documents serve as a means of identification and authentication for a wide range of purposes. In this blog, we will discuss the process of linking Aadhaar with PAN in India, its benefits, and why it is mandatory.

 

Mandatory Linking of Aadhaar and PAN:

The Government of India has made it mandatory to link Aadhaar with PAN to curb tax evasion, black money, and other financial irregularities. The Supreme Court of India has also upheld the mandatory linking of Aadhaar with PAN. The deadline for linking Aadhaar with PAN has been extended several times, and currently, the last date to link Aadhaar with PAN is 30th June 2023.

 

Process of Linking Aadhaar and PAN:

The process of linking Aadhaar with PAN is simple and can be done online or offline. The following are the steps to link Aadhaar with PAN online:

 

·         Visit the e-filing website of the Income Tax Department of India at https://www.incometax.gov.in/

·         Click on the 'Link Aadhaar' option under the 'Quick Links' section on the left side of the home page.

·         Enter your PAN, Aadhaar number, and name as mentioned on the Aadhaar card.

·         Pay 1,000/- non-refundable fee though e-pay Tax service to proceed with submission of Aadhar PAN linking request.

·         Kindly ensure that the fee payment is made through a single challan under Minor Head 500 - Other Receipts (500) and Major Head 0021 [Income Tax (Other than Companies)].

·         If payment has already been made on the Protean (NSDL) portal, we recommend trying to link the documents after a period of 2-4 working days from the payment date. And enter your PAN, Aadhaar number, and name as mentioned on the Aadhaar card.

·         Tick the box that says 'I have only year of birth in Aadhaar card,' if applicable.

·         Enter the captcha code and click on the 'Link Aadhaar' button.

·         A message will be displayed on the screen confirming the successful linking of Aadhaar with PAN.

 

Offline Process:

If you prefer the offline mode, you can link your Aadhaar with PAN by visiting a designated PAN service center or by sending a letter to the Income Tax Department of India. The letter should include your PAN, Aadhaar number, and a request for linking both.

 

Benefits of Linking Aadhaar and PAN:

Linking Aadhaar with PAN offers several benefits. Some of the major benefits are as follows:

 

1.       Simplified Tax Filing: Linking Aadhaar with PAN simplifies the tax filing process as it eliminates the need to submit a physical copy of the income tax return (ITR) acknowledgment to the Income Tax Department of India.

2.       Easy Verification: Linking Aadhaar with PAN enables easy verification of the taxpayer's identity, thereby reducing the chances of tax evasion.

3.       Faster Processing of ITR: Linking Aadhaar with PAN helps in faster processing of the ITR as it eliminates the need for manual verification of the taxpayer's identity.

4.       Multiple Accounts: Linking Aadhaar with PAN ensures that all your bank accounts, investments, and other financial instruments are linked to a single identity, which reduces the chances of fraud and irregularities.

5.       Multiple PANs can be detected: Linking Aadhaar with PAN helps in detecting multiple PANs registered under the same name, which is often used to evade taxes.

 

Conclusion:

Linking Aadhaar with PAN is a simple process that offers several benefits to taxpayers. The government of India has made it mandatory to link Aadhaar with PAN to ensure transparency and reduce financial irregularities. It is important to link Aadhaar with PAN before the deadline to avoid penalties and ensure compliance with the law.

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