Don’t forget to link Aadhaar to PAN before filing your taxes. The Central Board of Direct Taxes (CBDT) has made it mandatory to do so. The deadline for Aadhaar PAN linking is 31st March 2019. Let’s look at the different ways to link Aadhaar with PAN in this guide by H&R Block, India.
To link Aadhaar with PAN using the incometaxindiaefiling portal, first register yourself on the Income Tax website. After registering, follow the steps given below:
The Income Tax Department has announced an easy way out for you can to link your PAN with your Aadhaar using an SMS based process. The format of the SMS which you can use to link your Aadhaar with PAN is explained as follows:
Type UIDPAN <12-digit Aadhaar number> <10-digit PAN> and send the SMS to 56161 or 567678
For Example: UIDPAN 645574484390 ASDDP2408N
You can also link Aadhaar with PAN while applying for a new PAN card or updating the details of an existing one. Provide your Aadhaar details in the PAN application/ update form. The linking will be completed once the UIDAI verifies the data.
The Income Tax Department has started an online facility that allows you to correct the errors in the name as well as any other information mentioned in the Aadhaar and PAN card. The I-T Department had already launched the online facility for linking the two cards with ease and now it has added two hyperlinks for e-filing your tax returns on the official website.
One link takes you to the PAN card application page. The other link takes you to the UIDAI Aadhaar Self Service Update Portal (SSUP) where you can log in and update all the details. You can also upload all the scanned documents that are required as proof for updating data.
[ Read: How to update Aadhaar Details ]
[ Read: How to update PAN Details ]
The government has made it mandatory for all the entities to link their PAN card with Aadhaar card for the following reasons:
Multiple PAN Cards: You may have heard or read instances of people or entities applying for multiple PAN cards to avoid paying taxes and as a result, defraud the government. People or entities who apply for more than one PAN card generally use one of the cards for a set of financial transactions and pay applicable taxes for those transactions.
The other cards are used for transactions or accounts that they want to hide from the Income Tax Department, further avoiding paying taxes on the same. By linking the PAN card with Aadhaar, the government will be able to link the identity of the entity through his Aadhaar card and will subsequently have the record of his financial transactions made through the PAN card linked with the Aadhaar.
If the government finds out that there are multiple PAN cards with one person or entity, it will then take corrective actions against them.
Tax Evasion: The government will be able to keep tabs on the transactions that are taxable of a person or entity whose Aadhaar will be used to verify the identity and address, by linking PAN with Aadhaar card.
This means that every transaction and activity will be recorded by the government and can be taxed later, if needed. Therefore, tax evasion will be a thing of the past as the government will already have the record of all the transactions and the entity will have to pay taxes on the same, if liable.
Income Tax Filing made easy: Entities will not have to submit their Income Tax Acknowledgement to the I-T Department after linking their PAN with Aadhaar card, because of which they will be able to e-file their tax returns quickly and seamlessly.
A. With the government making Aadhaar card necessary for applying for a PAN Card, NRIs were confused if they had to apply for an Aadhaar card as well. However, the Unique Identification Authority of India has quoted that if you are an NRI and you haven’t stayed in the country for a period of 182 days or more in the last 12 months, you do not need Aadhaar card to avail your PAN Card. Also, applying for a PAN Card online is not applicable for NRIs and you will have to take the offline method of applying for the same.
A. It is advisable that you apply for an Aadhaar card and get it linked to your PAN to ensure that your PAN is valid. Also, since Aadhaar has become necessary for availing most of the benefits provided by the government it is always better to get an Aadhaar card for yourself.
A. After you link your PAN card with Aadhaar, you will be eligible to avail the following benefits: