A PAN (Permanent Account Number) card is a unique 10 character code that is assigned to all tax paying entities in India. Issued by the Income Tax Department, the card links all transactions that attract tax under a single source, making it convenient for the government to keep track of these.
A PAN card is necessary for filing Income Tax returns in the country, and all individuals and entities that pay tax, including foreigners are expected to have one.
Besides its primary use, a PAN card is also used as proof of identity and age for everything from booking tickets for a movie, investing in the stock market to applying for a passport.
The Aadhaar card is a unique identification card that is assigned to every Indian citizen. Issued by the Unique Identification Authority of India, the card is a 12 digit number that serves as proof of identity as well as proof of address. An initiative by the government to have a single identification document for every citizen in the country, the card is a personal identification card that contains the individual’s biometric and demographic information.
Nowadays, a number of government services and schemes require an Aadhaar number for registration and verification purposes, thereby making it an important document.
Here's how to link Aadhaar with PAN using SMS
The Income Tax Department declared today that taxpayers should link their PAN card with their Aadhaar card using an easy SMS-based process.
SMS format to link Aadhaar with PAN
Send SMS to 567678 or 56161 in following format:
Example: UIDPAN 3421342112341234 AAAAAE12EE
The department issued ads in newspapers across the country and explained how both the both the unique identity numbers of a person can be attached by sending a message to either 56161 or 567678.
People can also go to the official e-filing website of the Income Tax Department and link both these documents. Linking these two proofs of identity will help you to get tax facilities online.
Aadhaar can also be fed into PAN database by mentioning Aadhar in PAN application to get a new PAN allotment or by mentioning Aadhaar in the request to change for that is used to reprint a PAN card, explained an advertisement. Once the UIDAI (Unique Identification Authority of India) verifies the data, the linking will be completed.
The individual will receive an OTP from the Aadhar database to their registered mobile number. It has been made compulsory by the government, for the tax payers, to mention the Aadhar or the enrolment id at the time of filing their Income-Tax returns (ITR).
Procedure for Linking PAN Card and Aadhaar Card
In order to link PAN and Aadhaar cards, tax payers have to first register on the Income tax e-Filing portal. Once they have done so, they are to follow the steps outlined below:
- Log in to the e-Filing portal of the Income Tax Department by entering the log-in ID, password and date of birth
- On logging in to the site, a pop up window will appear, prompting you to link your PAN card with Aadhaar card.
- Details such as name, date of birth and gender will already be mentioned as per the details submitted at the time of registration on the e-Filing portal.
- Verify the details on screen with the ones mentioned on your Aadhaar card.
- If the details match, enter your Aadhaar card number and click on the “link now” button.
- A pop-up message will inform you that your Aadhaar card has been successfully linked to your PAN card.
Open the Income Tax e-filing portal.
Register on it. Your PAN (Permanent Account Number) will be your user id.
Login on the page using your User ID, Password and Date of Birth.
Here a popup window will appear if not just find the blue tab on the highest bar named ‘Profile Settings’ on Menu bar and click on on ‘Link Aadhaar’.
Add the required details like name, DOB and gender as per pan details after Enter your 12 digit Aadhaar card number and verify captcha and Click On Link Aadhaar.
Finally a popup message will display as your Aadhaar card has been successfully linked to your PAN card.
Importance of Linking PAN Card with Aadhaar Card
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.
Ease in Filing of Income Tax Returns:
Entities who have linked their PAN and Aadhaar cards will be able to file their e-Returns, or their online Income Tax returns seamlessly and quickly. By linking the two, entities will no longer have to submit their Income Tax acknowledgement to the IT department, thus saving tax payers a lot of trouble.
Correction facility for linking PAN with Aadhaar is launched by the Income Tax Department
The IT department has started the online facility for correction of errors in names and other information present on the Aadhaar document and Permanent Account Number (PAN) card. The Income Tax department already launched the facility to link the PAN Card with Aadhaar. Now it has also added two hyperlinks on the official website for e-filing of tax. One link takes to the application page for Permanent Account number by an Indian national or a foreigner and the other link takes you to the page where you can update all the necessary changes. In order to update all the Aadhaar details, an individual can easily log on to the Aadhaar SSUP (Self Service Update Portal). He/she can also upload all the scanned documents that are needed as data update request proof.
More than 1.22 crore assessees have already linked their PAN and Aadhaar. However, this number is pretty low as the total number of people who got Aadhaar is 111 crore and the number of people who have been issued PAN stands at over 25 crore. According to the statistics offered by the Income Tax department, at present, there are only 6 crore people in India who file their income tax properly.
As per Arun Jaitley, the Finance Minister of India, made the Aadhaar mandatory for the filing of Income Tax. This was done so that tax evaders are not able to avoid their tax payments by showing multiple PAN cards.
FAQ’s on Linking Aadhaar Card to PAN Card
What should I do if my details as per my PAN card do not match with the ones mentioned on my Aadhaar card?
If the details on your PAN card such as spelling of name, date of birth or gender do not match the ones on your Aadhaar card, you will have to submit an application with valid proof and get the details corrected. After this, you may apply to link your Aadhaar with your PAN card.
Do I have to submit any documentary proof to link my PAN and Aadhaar card?
No, you are not required to submit any documents when linking your Aadhaar to your PAN card. You have to check if the PAN information mentioned on the website matches your Aadhaar card and then apply for them to be linked.
What are the details I have to check when linking my PAN with my Aadhaar card?
When linking your PAN with your Aadhaar card, you have to make sure that your name, date of birth and gender as displayed on the income tax website matches with the details on your Aadhaar card.
Link PAN Card with Other Account
Link PAN Card with Top Bank Account
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- Link PAN Card to Canara Bank Account
- Link PAN Card with OBC Bank Account
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News About link Aadhaar and PAN Card
Link PAN card to Aadhaar prior to filing Income Tax returns
The deadline to file Income Tax returns for the year 2017-18 is on 31 July, but prior to filing returns individuals will have to ensure that their Aadhaar card is linked with their PAN number as quoting of Aadhaar has become compulsory from this year. Additionally, Aadhaar is also mandatory for PAN card applications.
Individuals can do this via SMS or by visiting the website of the Income Tax Department of India.
24th July 2017
Linking of PAN and Aadhaar: 9 Judge constitution bench to be set up by SC to decide if privacy is a fundamental right
The Supreme Court has decided to set up a 9 judge Constitution bench to determine whether privacy is a fundamental right following critics calling PAN and Aadhaar linking an attempt to reduce civilian liberties. This matter will also come up for hearing in the apex court.
The Centre has assured the Supreme Court that all Aadhaar cardholders’ biometrics are safe. The Supreme Court upheld the validity of an Income Tax Act provision that makes Aadhaar compulsory for allotment of PAN numbers and filing of tax returns but has imposed a partial stay on the implementation until the right to privacy concerns have been addressed.
24th July 2017
Link your Aadhaar now with PAN at GPO
If you are residing in Amritsar, you can link your Aadhaar now with your PAN by visiting the General Post Office (GPO) in the city. If you are an account holder at the GPO, you can get guidance from the institute to connect your Aadhaar with your PAN card.
This step is being implemented by the GPO as the Union Government has made it mandatory for every taxpayer to link Aadhaar to their PAN in order to file income tax returns.
If you do not do the linking as soon as possible, your PAN will soon be considered invalid.
18th July 2017
Aaykar Setu - New mobile app to help you link Aadhaar and PAN
The Income Tax Department has introduced a new mobile application that helps taxpayers perform basic tax-related procedures using their smartphones. The app, named Aaykar Setu, also enables assessees link their Aadhaar number with PAN. The term ‘Aaykar Setu’ literally means Income Tax bridge, and that is precisely what the app aims to do.
The user interface of the application shows various categories, such as TDS, TAN/PAN, Tax payment, etc. When each option is selected, the app takes the user to the relevant web page where he/she can make the updates. Timely notifications on important dates and news on income tax are also provided by the app. In addition, there is a live chat option that is available from 10 a.m. to 6 p.m. on weekdays, using which assessees can get in touch with the customer service team.
14th July 2017
Supreme court to discuss mandatory linking of Aadhaar card
The Supreme court is all set to discuss the mandate of linking Aadhaar cards to social security schemes and so on as passed by the government. One senior official against the mandate said that we seem to be in a totalitarian regime where people are being forcefully tagged and tracked by the government. He added by saying that the country was turning into a concentration camp. The matter will be discussed in the coming days.
14th July 2017
e-filing of ITR through ITR-4 Sugam
July 31st, 2017 is the last day to file Income Tax Returns. From July 1st onwards, Aadhaar-PAN linking is mandatory for e-filing of Income Tax Returns (ITR). As per Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act, 1961, ITR-4 Sugam is the ITR form required for the assessment year 2017-18 for individuals, firms, and HUF members who have adapted presumptive income scheme. e-filing of ITR can be done online through the Income Tax Department website using the Digital Signature Certificate (DSC). Download the form, sign it, and send it to the I-T Department's CPC office in Bangalore within 120 days of e-filing.
14th July 2017
Categories of Individuals Exempt from Linking Aadhar and PAN
The Indian government made it mandatory for all individuals to link Aadhar number with PAN (permanent account number) with effect from July 01, 2017.
However, the Central Board of Direct Taxes or CBDT, has come up with a list of category of individuals exempted from this rule.
The May 11, 2017 notification says that the provisions of section 139AA of the Income Tax Act shall not apply to individuals without an Aadhar number or its Enrolment ID, if they are:
- Residing in the States of Jammu and Kashmir, Assam, and Meghalaya.
- Non-residents as per Income-tax Act, 1961.
- Aged 80 years or more during the last year.
- Not citizens of India.
On June 10, CBDT declared that anyone with an allotted PAN as on July 01, 2017, and Aadhar number or eligible to get Aadhar number, shall intimate his/her Aadhar number to the I-T authorities for the linking of PAN and Aadhar.
The I-T department clarified that taxpayers without Aadhar number or the enrolment ID will not be able to e-file ITRs starting July 1. But no PAN would be invalidated.
People unable to link their Aadhar with PAN by July 1 would have to mention the UIDAI-provided number in their e-ITR. This will be considered valid linking of Aadhar and PAN.
14th July 2017
IT Department launches form to link PAN card with Aadhaar manually
The Income Tax (IT) Department has launched a new form of 1 page in order to link Aadhaar with PAN manually. This mode is apart from the SMS and online linking facilities.
The applicant will need to mention their PAN and Aadhaar number with the spellings of their names and provide a proper signed declaration that the Aadhaar number given in the application form has not been linked to any other PAN.
The applicant will have to declare that he or she understands that full security and confidentiality will be maintained for his or her personal identity data which will be used for authentication with Aadhaar.
14th July 2017
Aadhaar, PAN to be linked by July 1st
Citizens of India who have been allotted a 12-digit Aadhaar number will have to have it linked to their PAN. Those who are planning on applying for a PAN card will also have to quote their Aadhaar number when they do so. The Finance Act of 2017-18 has made Aadhaar a necessary requirement for the filing of tax returns provided that your PAN has been linked with your Aadhaar. Linking the two is expected to keep a tab on tax evasion. According to a notice by the government, those who fail to link their Aadhaar and PAN will have their PAN cancelled.
It has been reported that over 2.07 crore taxpayers residing in India have already linked their Aadhaar and PAN card. Currently, there are over 115 crore people who have an Aadhaar card where as there are over 25 crore PAN card owners in the country.
4th July 2017
Aadhaar credentials required for PAN card application from July 1st onwards
Over 25 crore PAN cards have been issued by the Income Tax Department and about 115 crore Aadhaar cards have been issued by the Unique Identification Authority of India (UIDAI) so far. The Central Board of Direct Taxes (CBDT) has linked more than 2.16 crore Aadhaar and PAN credentials till now. The government has made Aadhaar-PAN linking mandatory to file Income Tax Returns (ITR). From July 1st onwards, applicants must provide their Aadhaar number to apply for a new PAN card. Those who are not able to link their Aadhaar and PAN credentials by July 1st, can provide their UIDAI enrollment ID or number in the e-ITR forms along with their Permanent Account Number (PAN) to e-file ITR. As per Section 139AA of the Income Tax Act, 1961, PAN cards that haven't been linked with Aadhaar credentials within the due date set by the central government will be deemed invalid.
30th June 2017