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What Happens If You Don't Link PAN With Aadhaar Card?

PAN Card and Aadhaar Card are important government identification documents in India and it is very important to link the two.

<div class="paragraphs"><p>Source: soumen82hazra from Pixabay </p></div>
Source: soumen82hazra from Pixabay

The Permanent Account Number (PAN) Card and the Aadhaar Card are both important forms of identification in India. The PAN Card, issued by the Income Tax Department, is a unique identification number given to individuals and businesses for tax purposes. The Aadhaar Card, on the other hand, is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI) to every resident of India.

What Happens If You Don’t Link PAN Card To Aadhaar Card?

In recent years,  the Indian government has made it mandatory to link your PAN Card and the Aadhaar Card. This has been implemented to ensure that all taxpayers have a unique identifier linked to their PAN which will in turn help curb tax evasion. Not linking your Aadhaar to PAN Card can have the following consequences:

  • Filing an Income Tax Return (ITR) may become challenging if the PAN Card and the Aadhaar Card are not linked. It is required to include the Aadhaar Card number when filing the ITR. If the two cards are not linked, the ITR may be rejected by the Income Tax Department, preventing the individual from filing their ITR and potentially hindering their ability to receive a tax refund.

  • If the PAN Card and the Aadhaar Card are not linked, it may cause difficulties when trying to access certain government services. These services, such as obtaining subsidies, applying for a passport, and opening a bank account, often require the submission of both cards. If the two documents are not linked, it may be problematic when attempting to make use of these services.

  • Obtaining a new PAN Card may be difficult if it is not linked to the Aadhaar Card. If the PAN Card is lost or damaged, it may be difficult to get a new one without linking the two documents. The government has also made it mandatory to include the Aadhaar Card number when applying for a new PAN Card.

  • If the PAN Card and the Aadhaar Card are not linked, you may be subject to a penalty of up to Rs. 10,000 according to the Income Tax Act. In addition, if the two cards are not linked by March 31, 2023, your PAN Card may become inoperable.

How To Link Aadhaar To PAN?

It is important to note that the deadline for linking the PAN Card and the Aadhaar Card has been extended on multiple occasions due to the COVID-19 pandemic. The current deadline for linking the two documents is March 31, 2023. The process of linking the PAN Card and the Aadhaar Card is straightforward and can be completed online or in person at a PAN Card centre.

There are two main stages involved in linking your Aadhaar to your PAN Card, the first stage involves paying the late fees for not having linked them yet, and the second stage involves submitting the Aadhaar Linking request. For the first part, will have to follow these steps:

  1. Go to the e-Pay Tax page on the Income Tax e-Filing website.

  2. Enter your PAN and confirm your PAN and mobile number to receive an OTP.

  3. After verifying the OTP, you will be redirected to a page with different payment options.

  4. Click on the "Proceed" button for the Income Tax payment option.

  5. Select the assessment year (AY) as 2023-24 and the Type of Payment as "Other Receipts (500)" and click "Continue".

  6. Enter the amount of Rs. 1000 under the "Others" field in the tax breakdown and proceed to make the payment.

After making payment on the NSDL (now Protean) portal, you can submit the request to link your Aadhaar Card and PAN Card on the e-Filing portal within 4-5 working days. Here are the detailed steps:

  1. Go to the e-filing portal and log in. On the dashboard, click on "Link Aadhaar to PAN" or "Link Aadhar" in the personal details section.

  2. Enter your PAN and Aadhaar number and click "Validate".

  3. If you have already made a payment on the NSDL (Protean) portal and the payment has been verified, a pop-up message will appear saying "Your payment details are verified". Click "Continue" on the pop-up message to submit the request to link your Aadhaar Card and PAN Card.

  4. Fill in the necessary details and click the "Link Aadhaar" button.

  5. Enter the 6-digit OTP that you receive on the mobile number mentioned in the previous step.

  6. Your request to link your Aadhaar Card and PAN Card has been successfully submitted. You can now check the link status of the two cards.

You can also visit a PAN Card centre to link your PAN Card and your Aadhaar Card. To do this, fill out a form and submit it along with photocopies of your PAN Card and Aadhaar Card.