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The Government of India has made it mandatory to link your PAN Number with your Aadhaar card before June 30th, 2020. The decision to extend the deadline was taken due to the Coronavirus pandemic.
Tax payers can now link their PAN & Aadhaar in two ways:
Most existing tax payers have their PAN & Aadhaar linked on the e-filing website since you have been filing your returns on this e-filing portal for a few years now. In case you have not done so, you can do it by clicking on the ‘Link Aadhaar’ option from the homepage of the e-filing portal.
You can also link your PAN and Aadhaar by sending an SMS in the prescribed format to 567678 or 56161. The format you have to use is:
UIDPAN SPACE 12 digit Aadhaar SPACE 10 digit PAN
For example, if your Aadhaar number is 123412341234 and PAN is ABCDP5678Q. Then you are required to send an SMS in the below format to 567678 or 56161
UIDPAN 123412341234 ABCDP5678Q
About How to check your PAN & Aadhaar linking status
It is very simple to check your PAN-Aadhaar linking status through the e-filing website:
You can easily check the PAN & Aadhaar linking status through SMS. You just have to type an SMS in the prescribed format and send it to 567678 or 56161. The format you have to use is:
UIDPAN SPACE 12 digit Aadhaar SPACE 10 digit PAN
For example, if your Aadhaar number is 123412341234 and PAN is ABCDP5678Q. Then you are required to send an SMS in the below format to 567678 or 56161
UIDPAN 123412341234 ABCDP5678Q
If the linking has been done, you will receive a message to this effect. If you get a message that the linking has not been done, you can follow the procedure to link them.
You may end up paying a penalty of Rs. 10,000!
The Department of Income Tax constantly urges citizens to link their PAN and Aadhaar before the specified deadline. Linking your PAN & Aadhaar is now compulsory, without fail.
If you do not link your PAN & Aadhaar before the deadline, it has been announced by the IT Department that it will become 'inoperative.' You will not be able to use your PAN financial transactions such as bank account opening, fixed-deposit investment, income tax returns, etc. Effectively, an Inoperative PAN means the person has no PAN. PAN will become operational again only from the date on which PAN is linked to Aadhaar. For example, if you have not linked your PAN & Aadhaar by June 30th, 2020, it will become inoperative on July 1st, 2020. If you then go and complete the linking on July 15th, 2020, your PAN will once again become operative from this date.
Now, as per latest statements, the IT Department might also levy a fine of whopping Rs.10,000 on individuals who fail to link their PAN with Aadhaar.
PAN is mandatory for all tax paying citizens. It has to be mentioned on your income tax returns. Here are some of the applications of the PAN number:
By mentioning your PAN number on these transactions, the government is able to keep track of the financial transactions you have carried out in a year and levy corresponding income tax on a citizen.
Instant PAN allotment service based on Aadhaar has been introduced to assign PAN in near-real time. You are required to quote a valid Aadhaar number issued by India's Unique Identification Authority (UIDAI) and is not linked to any PAN. The e-KYC data from the Aadhaar number will be shared with India's Unique Identification Authority (UIDAI). You will be allotted a PAN after proper processing of e KYC data in the Income-Tax database.
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