What you need to know about linking your Aadhaar and PAN card?

Is it necessary to link PAN card with Aadhaar? How to link Aadhaar to PAN card? If you are one of many who have all these questions, this article is for you.

What you need to know about linking your Aadhaar and PAN card?

Whether you are a taxpayer or not, you are certainly aware of the importance of Aadhaar card, and the buzz around linking it with your PAN Card. If you are still wondering if it is necessary to link your PAN card with

Aadhaar or how to link the two, here is everything you need to know…

Before we dive into the linking, first let’s learn what these cards are.

What is a PAN card?

PAN or Permanent Account Number (PAN) card is a 10-digit alphanumeric number, issued by the Income Tax Department. It contains all tax-related information about a person or company. It is crucial for every taxpayer to have this card.

Related: All about the PAN (Infographic)

What is an Aadhaar Card Number?

Aadhaar card number (12-Digit Unique Identity Number) is an individual identification number issued by Unique Identification Authority of India (UIDAI). Aadhaar Cards are issued by the Government of India to individuals of all ages, to establish unique identities, and provide these 7 benefits.

Related: Aadhaar card may soon be the only ID proof you need. 

Is it necessary to link PAN card with Aadhaar?

The simple answer is yes. The Supreme Court in its judgement on September 26, 2018 upheld the constitutional validity of the Aadhaar and made it mandatory to link certain documents with Aadhaar Card, PAN card being one of them. 

Under Section 139AA of the Income Tax Act, all existing PAN holders and new applicants have to compulsorily link the Aadhaar Card for filing returns starting FY 2019-20. The Central Board of Direct Taxes (CBDT) through a press release on March 31, extended the deadline for linking PAN with Aadhaar to December 31, 2019. Failure to do so will not only prohibit you from filing your IT returns but also render the PAN Card invalid unless specifically exempted.

Related: What happens if you do not link PAN with Aadhaar by 30th September?

Here is why you need to do it and the benefits Aadhaar card and PAN card linking can bring to you. 

  • Getting rid of Fake PAN card

Linking will help the government weed out fake PAN cards that individuals use in order to conceal their taxable income and pay less or no taxes at all.

  • Identify tax evaders

Currently, a PAN card is essential for paying taxes. Since PAN is a necessary KYC requirement for bank accounts, linking the Aadhaar with PAN will automatically link an individual’s Aadhaar with his/her bank accounts. This will make it easier for the Income Tax Department to track everyone’s transactions, and the tax they should be paying.

  • Curbing black money circulation

Financing illegal activities such as drug trafficking becomes easy with fake identities. Once a PAN card is linked to an Aadhaar card, it will eliminate the possibility of these activities.

Related: Difference between black money, black wealth, and black economy

  • Easy for Taxpayers to file returns

Currently, taxpayers need a PAN card to file income tax returns. The government has now made it mandatory to provide Aadhaar Card details too while filing IT returns. Another benefit of Aadhaar and PAN card linking is that it will enable individuals to file their returns online, without any hassle. This also means that taxpayers will no longer have to send acknowledgements to the IT department. The legitimacy of the returns (ITR-V) can be verified through an OTP received on your Aadhaar registered mobile number.

Related: Tax Returns: who should file them and when?

Important things to note when linking your Aadhaar and PAN Cards

First, ensure your details on both these documents are identical (name, gender, date of birth) for the linking to be successful.  

In case your name is different on both the documents; for instance, Document A has your initials, but Document B has your full name. Or Document A was made with your maiden name, but Document B has the name you chose after marriage.  

The Income Tax Department has offered two ways to correct this problem. 

  •  On 14 May 2017, the Income Tax Department launched an online facility for correcting errors on both PAN and Aadhaar Cards. All you have to do is click on the links mentioned below and follow the steps to rectify the errors. 
  • For correcting errors on PAN: https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
  • For correcting errors on Aadhaar Card: https://ssup.uidai.gov.in/web/guest/update
  • Alternatively, you can link the two without changing your name on either document. This can be done by generating an OTP and uploading a scanned copy of your PAN Card on the IT Department’s filing website. HOWEVER, your date of birth must match on both documents. 

Related: Tax Returns: Who Should File Them And When?

How to link Aadhaar to PAN card?

There are two ways to link your PAN and Aadhaar Cards. 

Method 1: 

The PAN and the Aadhaar can be easily linked via SMS to either of the two numbers 567678 or 56161 in a specified format. 

The format is as follows: UIDPAN <SPACE><12-digit Aadhaar number><SPACE><10-digit PAN> 
 For example: your 12 digit Aadhaar number is 123456123456 and 10 digit PAN is BGJPS0000F

To link it, the following message needs to be sent: UIDPAN 123456123456 BGJPS0000F to either 567678 or 56161. 

Before sending the SMS to cross-check that your valid mobile number is registered with the Aadhaar database as the same number will receive an OTP to complete the procedure. 

Method 2:

  • Go to the Income Tax Department website (www.incometaxindiaefiling.gov.in). In the left pane, click on 'Link Aadhaar' 
  • An application form will open where you will have to fill out the following details: 
  • PAN 
  • Aadhaar Number (12 Digits) 
  • Name as per Aadhaar (Avoid spelling errors here) 
  • Captcha Code 
  • Click on the 'Link Aadhaar' button 

If your details (Name, DOB, and Gender) on Aadhaar card match your PAN details, the linking will be confirmed. 

In case your DOB and Gender match, but Name is a partial match, you will get an OTP on the mobile number registered with your Aadhaar. After providing this OTP the linking will be confirmed.  

What if you fail to link? 

For taxpayers, the linking is a must. The latest bill passed by Lok Sabha makes the Aadhaar Card mandatory for filing IT returns, under the Finance Act 2017.  

If an individual fails to provide Aadhaar Card details or proof of having applied for Aadhaar, income tax returns cannot be filed from FY 2019-20.

Also, failing to link your Aadhaar and PAN cards will result in the invalidation of your PAN Card. This means your PAN Card will not be considered as identity proof. Another glitch would be - without a valid PAN you would be unable to buy property worth more than Rs. 10 Lakh.  

Related: Most important tax changes from 1st April 2017

For those exempted from paying taxes, since the Supreme Court has already stated that it is not mandatory for citizens to obtain an Aadhaar card, the linking of Aadhaar card and PAN card cannot be made mandatory. To summarise, if you are a taxpayer, consider linking these two documents before September 30, 2019. 


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