Latest rules pertaining to linking Aadhaar with PAN you must know about

Summary: It is mandatory to link your PAN and Aadhaar number. Failure to do so can lead to serious financial complications. Know how to link your Aadhaar number with PAN.

06 Jan 2023 by Team FinFIRST

As per the new rules issued by the Income Tax Department, it is mandatory to link your PAN and Aadhaar number. Failure to do so can pose serious financial complications as well as render your PAN invalid. Linking Aadhaar with PAN is, therefore, an important task that every Indian citizen must complete at the earliest.

There are several ways in which you can link PAN with Aadhaar, which are listed below, along with the benefits of linking Aadhaar with PAN. Read on for an overview of the new laws.

What Does the New Rule State?

According to the Income Tax Act 1961, every Indian citizen was required to link their PAN with Aadhaar by 31 March 2022. However, to avoid causing inconvenience to the taxpayers, the deadline was extended to 31 March 2023, subject to the payment of a penalty. A penalty of Rs 500 had to be paid if your PAN was not linked with your Aadhaar by 30 June 2022. Missing this deadline required payment of an increased penalty of Rs 1000 from 1 July 2022.

If you still fail to link your PAN with Aadhaar by then, your PAN will stand inoperative from 1 April 2023. Furthermore, if you continue to use the cancelled PAN card, you can be fined a sum of Rs 10,000 under Section 272B of the Income Tax Act. This rule was released in a notification issued by the Central Board of Direct Taxes (CBDT) dated 29 March 2022.

How to Link Your PAN Card with Aadhaar Card

There are several ways to link your Permanent Account Number (PAN) with your Aadhaar number. Here are two of the most common ones:

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Link PAN with Aadhaar Online

· Log on to the income tax website, go to the e-filing portal, and click on ‘Link Aadhaar’

· Enter your personal details such as name as mentioned on your Aadhaar card, PAN, and Aadhaar number, along with a valid mobile number

· You should receive an OTP on your mobile. Enter this on the verification page and click on ‘Validate’

· Once you have logged in, you will find the option of ‘Link Aadhaar to PAN’ on your dashboard. Click on this and again click on ‘Link Aadhaar’.

· Once done, you will land on the Link Aadhaar page, which will have your name, date of birth, and gender prefilled as per your PAN card. Enter your name as mentioned on your Aadhaar card, along with your Aadhaar number

· Check all the details once again and click on ‘I agree to validate my Aadhaar details’, and then click on ‘Link Aadhaar’

Link PAN with Aadhaar Through SMS

You need to send an SMS to 567678 or 56161 in the format below:

UIDPAN<12-digit Aadhaar number><10-digit PAN>

Benefits of Linking PAN with Aadhaar Card

· A simple task such as opening a bank account requires KYC compliance, which is impossible if you do not link PAN with Aadhaar.

· Thanks to complete digitisation, it is possible to avail of instant loans online with minimal documentation. This benefit is available only to those who have linked Aadhaar with PAN.

· If you want to make financial transactions exceeding Rs 50,000 via cash, bank cheque, or bank draft in a single day, it is not possible to do so if your PAN and Aadhaar are not linked.

· Other activities, such as opening a Demat account or buying bonds or debentures for a sum exceeding Rs 50,000, require linking PAN with Aadhaar.

Conclusion

It has been mandated that every Indian citizen should link their PAN with their Aadhaar number. This linkage will help the government to solidify their taxation policies and implement them more efficiently. IDFC FIRST Bank stands in solidarity with the Indian government and urges its customers to follow all the rules regarding linking Aadhaar with PAN at the earliest to avoid any hardship in the future.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.