How To Link Aadhaar With PAN in Simple Steps?

Why to Link Aadhaar with PAN?

Both the PAN card as well as the Aadhaar card are unique identification cards that serve as proof of identity that are necessary for registration and verification purposes. The government has urged all entities to link their PAN cards with their Aadhaar cards. This is being done for the following purposes:

Prevent Tax Evasion:
By linking the Aadhaar and PAN cards, the government will be able to keep tabs on the taxable transactions of a particular individual or entity, whose identity and address will be verified by his Aadhaar card. This will effectively mean that every taxable transaction or activity will be recorded by the government. As a result, the government will already have a detailed record of all the financial transactions that would attract tax for each entity, making tax evasion a thing of the past.

Multiple PAN Cards:
Another reason for linking PAN with Aadhaar is to reduce the occurrence of individuals or entities applying for multiple PAN cards in an effort to defraud the government and avoid paying taxes. By applying for more than one PAN card, an entity can use one of the cards for a certain set of financial transactions and pay taxes applicable for those. Meanwhile, the other PAN card can be used for accounts or transactions that the entity wishes to conceal from the Income Tax department, thereby avoiding paying tax on them. By linking the PAN and Aadhaar card, the government will be able to link the identity of an entity through his/her Aadhaar card, and subsequently have details of all financial transactions made through the linked PAN card. If there are multiple PAN cards registered under the same name, the government will be able to identify the same and take corrective action.

What is the deadline of Linking Aadhaar with PAN?

30th June, 2020 is the new deadline of linking Aadhaar Card with PAN Card. Earlier the income tax department had extended the last date from 31st March 2020 due to Covid-19 Pandemic. After 30th June, 2020 all PAN Card will become Inoperative if they are not linked with Aadhaar.

What will be the consequences of not linking Aadhaar with PAN?

Fine of ₹ 10,000 will be levied on such person using Inoperative PAN Card after 30th June, 2020.

In case the PAN Card is used for any purposes that are not related to tax such as applying for a driving license or opening a bank account, no fine will be levied. However, since all bank transactions come under the purview of income tax, there could be complications if the bank account is opened using an inoperative PAN. In case the PAN has been linked to the Aadhaar, the PAN becomes operative and no charges will be levied. Inoperative PAN cardholders need not apply for a new card in case the PAN is inoperative. The car will become operative once the linking process is done.

How to Link Aadhaar with PAN?

There are two ways through which you can link PAN and Aadhaar.

I. Through the Income Tax e-filing website

  1. Visit Income Tax Website Page for Aadhaar Link
  2. Fill in the required details as shown in the below image and click on ”Link Aadhaar” Tab
II. Sending an SMS from your Mobile Number registered with Aadhaar: The PAN can be linked with the Aadhaar number by sending an SMS to 567678 or 56161 from the registered mobile number. In order to do so, you need to type UIDPAN<12-digit Aadhaar><10-digit PAN> and send it to 567678 or 56161.

How to check whether my Aadhaar is linked with my PAN or not?

  1. Visit Income Tax Website Page for Aadhaar Link
  2. Fill in the required details as shown in the below image and click on ”Click here” flashing text highlighted below:

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  1. Rubi singh


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