The Union government has made it compulsory for individuals to link existing Aadhaar numbers with their permanent account number (PAN) with effect from July 1, 2017.
The government has also made quoting of the 12-digit biometric Aadhaar or the enrolment ID mandatory at the time of application of PAN.
To keep a check on tax evasion using multiple PAN cards, Finance Minister Arun Jaitley amended the tax proposals in the Finance Bill for 2017-18 and made Aadhaar mandatory for the filing of income tax returns and also called for linking of PAN with Aadhaar.
The revenue department issued a statement saying, “every person who has been allotted PAN as on July 1, 2017, and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the principal director general of income tax (systems) or DGIT (systems)”.
Here’s how to link your Aadhaar number with PAN:
• You can link your Aadhaar to your PAN through the Income Tax department’s e-filing website www.incometaxindiaefiling.gov.in.
• Enter your user id and password to access your profile.
• A new user can register on the portal by entering basic registration details such as PAN, name and date of birth.
• The facility can be used by anyone to link their Aadhaar with PAN.
• An option of linking through SMS is also available.
Here is the step by step process:
Through the Income Tax Website
• To link go to www.incometaxindiaefiling.gov.in
• Once you are logged into the portal, go to the “Profile Settings” tab. A drop-down menu will appear. Click on “Link Aadhaar”. A new form will be displayed.
• You must now enter your PAN and Aadhaar numbers
• Enter your name exactly as given in the Aadhaar card, avoiding any spelling mistakes
• Click submit.
• Once the UIDAI verification is complete, the linking will be confirmed. A success message is displayed, also a confirmation email is also sent to the registered email id.
How to Link it via SMS?
• An SMS should be sent from your registered mobile number to 567678 or 56161 in the following format.
Example: UIDPAN 123456789012 ABCDE1234F
What if the names in my Aadhaar and PAN cards are spelt differently?
In case there is a minor mismatch in the provided name than the actual data in the UIDAI database, an Aadhaar OTP (One Time Password) will be sent to your registered mobile number. However, the date of birth and gender in PAN and Aadhaar should exactly be the same.
Do I have to link my Aadhaar and PAN if my income is below the tax limit?
Yes, it is mandatory for you to link Aadhaar and PAN even if you don’t file income tax return.
What if there are some changes in your PAN or Aadhaar?
In order to make corrections in your PAN or Aadhaar, go to National Securities Depository Ltd (NSDL) website http://www.onlineservices.nsdl.com/paam and UIDAI portal http://ssup.uidai.gov.in/web/guest/update respectively.
What if the names in my PAN and Aadhaar cards are completely different?
If the names in both the documents are spelt completely different, the linking is bound to fail. So, the taxpayer must change the name in either Aadhaar or PAN card.
Why is your PAN card important?
Your PAN, or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It basically serves as an identity proof.
PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds, investments etc.
Your PAN is a universal identification key to track financial transactions that might have a taxable component to prevent tax evasion.
Know more here.