Benefits and Procedure of Linking Aadhaar with PAN



Quick Summary
Linking your Aadhaar with your Permanent Account Number (PAN) is a mandatory requirement for most individuals under Section 139AA of the Income Tax Act. This process helps prevent duplicate PANs, enables better tracking of financial transactions, and combats fraudulent activities. The linking procedure is straightforward and can be completed online via the Income Tax Department's official website.

AADHAR - PAN LINKING

As per Section 139AA of the Income Tax Act, every person who has PAN as on July 1, 2017, is required to link his/her PAN with his/her Aadhaar number within the due date notified by the government provided such person is eligible to obtain an Aadhaar number.

Also, every person who is eligible to obtain an Aadhaar number shall, on or after the 1st day of July 2017, quote Aadhaar number -

  1. in the application form for allotment of permanent account number;
  2. in the return of income

however, if a person does not possess Aadhaar number but have an Enrolment ID then such person should quote that number in the application for a permanent account number or, as the case may be.

Link Aadhaar with PAN: Benefits and How-To Guide

If a person failed to do so then his/her PAN would become inoperative.

The due date for linking PAN with Aadhaar earlier extended to 30th June, 2021 is further extended to 30th September, 2021,

It is to be noted that to link PAN with Aadhaar, a respective person should be eligible to obtain an Aadhaar number, that means a person who is not eligible to obtain Aadhaar number then such person need not link PAN with the Aadhaar.

List of people who need not link PAN with Aadhaar number

  1. Not a citizen of India
  2. Non-Resident Indians as per Income Tax Laws
  3. A person who is of the age of 80 years or more at any time during the previous year
  4. Residents of states of Assam, Meghalaya, and Jammu & Kashmir
 

Benefits of Linking PAN with Aadhaar Number

1. It will reduce the chances that one person is having more than one PAN card and due to this people cannot conceal their taxable income.

2. Nowadays Aadhaar number is necessary for almost all transactions, so when PAN is linked with Aadhaar then the Income Tax Department will have a track trail of all transactions.

3. When a person has more than one PAN Card there will be the possibility of fake identity and financing illegal activities such as drug trafficking become easy with fake identities. Once a PAN card is linked to an Aadhaar, it will eliminate the possibility of these activities.

4. It helps taxpayers in filing their income tax returns as well as in other supplementary activities. Aadhaar e-verification.

 

Procedure to link PAN with Aadhaar

1. Go to Income Tax Department's Website - https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar

2. Please fill up the following particulars accurately -

  • PAN
  • Aadhaar Number
  • Name as per Aadhaar
  • Mobile Number *

Tick the box with the following particulars as Applicable and click on Link Aadhaar

  • I have the only year of birth on Aadhaar Card
  • I agree to validate my Aadhaar details

3. Click on the "Link Aadhaar" button.

Please Note-

  1. Name, Date of Birth and Gender as per PAN will be validated against your Aadhaar Details.
  2. Please ensure that 'Aadhaar Number' and 'Name as per Aadhaar' is exactly the same as printed on your Aadhaar card.
  3. UIDAI Circular F.No. K-11022/631/2017-UIDAI with regard to discontinuation of the partial match in Demographic Authentication w.e.f 1-2-2017 by UIDAI

FAQ :

Linking Aadhaar with PAN is mandatory under Section 139AA of the Income Tax Act to prevent individuals from holding multiple PAN cards, which can be used to conceal taxable income and facilitate illegal activities. It also allows the Income Tax Department to track financial transactions more effectively.

Individuals who are not citizens of India, Non-Resident Indians (NRIs) as per Income Tax Laws, those aged 80 years or above, and residents of Assam, Meghalaya, and Jammu & Kashmir are exempt from linking their PAN with Aadhaar.

Linking Aadhaar with PAN reduces the chances of individuals holding multiple PAN cards, prevents concealment of taxable income, provides a clear trail of transactions for the Income Tax Department, and eliminates the possibility of using fake identities for illegal financing activities.

To link your Aadhaar with PAN, visit the Income Tax Department's official website (eportal.incometax.gov.in), accurately fill in your PAN, Aadhaar number, name as per Aadhaar, and mobile number. You may need to tick a box to validate your Aadhaar details before clicking 'Link Aadhaar'.

During the linking process, your Name, Date of Birth, and Gender as per your PAN details will be validated against your Aadhaar details. It is crucial that your Aadhaar Number and Name as per Aadhaar are exactly as printed on your Aadhaar card.




About the Author

Taxblock is One stop solution to ITR, GST, U.S Tax, NRI, EXPAT, TDS, Tax Planning and many more for Individual & Business

Taxblock India Private Limited, founded in 2019, is a fintech startup located in Pune, Maharashtra. We are enrolled as an E-Return Intermediary with Income Tax Department have established an In-House team of Technology Tax Experts to build a Financial Compliance Ecosystem for Individual Corporates. Our clients cho ... Read more

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