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.
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
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News About link Aadhaar and PAN Card
Linking with Aadhaar and PAN gains momentum
The linking of Aadhaar and PAN (Permanent Account Number) has been made mandatory from this financial year for HUF (Hindu Undivided Family) and individual tax payers. The linking process has also gained substantial momentum. This particular initiative has been considered to be a massive move against corruption as the faked Permanent Account Number card holders will get tracked very easily. They will not be able to avoid taxes any further. The linking of Aadhaar and Permanent account Number (PAN) has been introduced by the Department of Income Tax, from last financial year (FY 2016-2017), for both individual tax payers and HUF tax payers. However, the linking process has been made mandatory in the financial year 2017-2018.
As per tax consultants, this initiative’s result will become visible while filing Income Tax return online. The tax payer will not have to send any hard copy to the CPC or Central Processing Unit. This is because, the Central Processing Unit will send a one time password on the tax payer’s registered phone number, if the Aadhaar and PAN are linked. The tax payers will be verified instantly by the CPS by cross matching of Aadhaar and PAN. This initiative will also help track the corrupt individuals who hide their black money and didge tax my producing multiple PAN cards.
22nd May 2017
Aadhaar must for checking PAN card misuse
Government of India has told the Supreme Court that the Aadhaar card has been made mandatory for the Permanent Account Number card so that all the fake PAN cards can be identified. These fake cards have been used for black money circulation and terror financing. Mukul Rohatgi, the Attorney General stated that the idea of introducing Aadhaar was to enable a robust and secure system that ensures that a person’s identity cannot be faked. He added that due to the Aadhaar card, the Central Government has saved more than Rs 50,000 crores.
11th May 2017
The seeding of Aadhaar to PAN is essential to keep a check on the terror and drug financing
Following the pleas against the decision of making Aadhaar mandatory for the application of PAN and filing of Income Tax Return, the government defended the decision saying that Aadhaar was made mandatory for PAN in order to weed out fake PAN cards. The fake PAN cards are used for terror and drug financing, by making Aadhaar mandatory for PAN, the government can curb black money, tax evasion, and the duplicate identity documents. Aadhaar offers robust and superior authentication process which makes it the most accurate and efficient identification document. Aadhaar has become one of the most useful and important documents that can help a citizen register for various types of welfare services, and also in carrying out cashless transaction through the Aadhaar-based payment systems. The Supreme Court will have further hearings to discuss and analyze the importance of this decision from the government. As of now, from 1st of July, Aadhaar will be required for the application for the PAN as well as for filing the Income Tax Return.
11th May 2017
Government is defending the decision to link PAN Card with Aadhaar Card in SC
Following the hearing of pleas, challenging the decision in making Aadhaar mandatory for filing Income Tax Returns (ITRs) and for PAN, the panel at Supreme Court has defended the law stating various reasons. Aadhaar is one of the identification documents that provides superior authentication through demographics and biometric verification. The government aims to curb tax evasion and duplication of identity document through Aadhaar. The government finds the application of Aadhaar essential to bring order in society. Moreover, the government has also dismissed the concerns related to the information Aadhaar holds. Currently, Aadhaar has been made mandatory for filing the ITR and for the application of Permanent Account Number (PAN).
8th May 2017
High Court: Aadhaar to PAN linking can curb tax evasion
Following the hearing for the petition against linkage of Aadhaar and PAN, the High Court has mentioned that the linkage would help curb tax evasion. The total number of people filing their taxes are already low, additionally, many individuals use duplicate PAN card to avoid tax. The linkage of Aadhaar with PAN will provide superior identification service that can be validated from a biometric scan. The petition claims that the Section 139AA has been violated by making it a mandatory practice. The SC has already initiated the hearing for the batch filing the petition.
2nd May 2017
Your PAN card might become invalid from 1st of July
The government has made it mandatory to link the PAN to the Aadhaar before 1st of July. Following the notification, the government has noticed a surge in the total number of applications for PAN card. Additionally, the application for corrections in PAN card has also increased. If you are not linking your PAN to Aadhaar, chances are that it might be marked as invalid. Linking of PAN to Aadhaar is also required for e-filing the Income Tax Return (ITR). Recently, Aadhaar has been marked as useful or mandatory for many types of application. If you haven’t linked your PAN to your Aadhaar, you should get it done before the 1st of July.
27th April 2017
Credit Card killer BHIM App – Aadhaar Platform Launched By Modi
The BHIM – Aadhaar Platform for merchants was launched by Narendra Modi, Prime Minister of India, today. This platform allows payment using biometrics in Nagpur. It is expected that this platform will reduce dependency on credit/debit cards and will make digital payments easy for everyone. IDFC bank was the first bank to launch Aadhaar Pay.
18th April 2017
People who do not have surnames face issues with PAN and Aadhaar linking
Several people feel that they face problems as the Centre took the decision of making the Aadhaar card absolutely mandatory for the filing of income tax returns. The Aadhaar card must be linked to the PAN of the individuals.
Most of the people from the southern parts of India use initials after or before their names. The centres have not thought about this problem clearly and this has turned out to be a challenge for everyone. In case the linking between PAN and Aadhaar card does not take place by December 31, 2017 then the PAN card will become invalid.
12th April 2017
PAN cards that are not linked to Aadhaar are going to get cancelled
Aadhaar card will be required henceforth for filing IT returns. If an individual does not have an Aadhaar card but wants to pay his/her taxes then he/she must apply for one. Aadhaar, however, does not stop at IT filing. It must be linked to Permanent Account Number or PAN as well.
As per the new rule stated in the Finance Bill, Aadhaar and Permanent Account Number must be linked. In case, they are not linked, then the PAN will get cancelled.
27th March 2017
Furnish Aadhaar or PAN to book domestic air tickets
Customers will have to provide some form of identity proof or their PAN, Aadhaar, driving license number or Passport while booking flight tickets for domestic routes. This will be done so that the airlines can track travellers and this system would lead to India’s version of a no-fly list.
Next time if individuals misbehave or behave in a manner that endangers the passengers and the flight, his/her name would get added to the no-fly list and will be prevented from booking a ticket. Aviation minister Jayant Sinha has said that India is finalising its no-fly list and will grade objectionable behaviour committed by individuals and accordingly ban from from flying for a specific period of time ranging from a few months to a few years.
16th March 2017