PAN- Aadhaar Linking Mandatory By March 2023, How to Check and Link Your PAN and Aadhaar Card?

The Income Tax Department has issued a final warning to permanent account number holders who have not linked their number to their Aadhaar card. According to the most recent public advisory, if the PAN is not linked to Aadhaar by March 31, 2023, it will become inactive. PAN holders will be unable to use their ten-digit unique alphanumeric number after the deadline date, and financial transactions linked to their PAN will be halted. According to the I-T Act, all PAN holders who are not exempt are required to link their permanent account numbers (PAN) with Aadhaar by March 31, 2023. The unlinked PAN will become inoperative on April 1, 2023," according to the I-T Department's public advisory. Some residents are exempt from linking their PAN and Aadhaar. Individuals residing in Assam, Jammu and Kashmir, and Meghalaya; non-residents under the Income Tax Act of 1961; aged eighty years or more at any time during the previous year; and not citizens of India are exempt from the process of linking PAN with Aadhaar.

Last Date to Apply and fee for linking PAN-Aadhaar

The Central Board of Direct Taxes (CBDT) has extended the deadline for linking PAN with Aadhaar from March 31, 2022 to March 31, 2023. People must, however, pay a fee of Rs 1000 to begin the linking process. According to the IT department's advisory, if people do not link their PAN to Aadhaar by March 31, 2023, their PAN number will become inactive.

Why is PAN linked to Aadhaar?

1. The Central Board of Direct Taxes (CBDT) has extended the deadline for linking PAN with Aadhaar from March 31, 2022 to March 31, 2023. People must, however, pay a fee of Rs 1000 to begin the linking process. According to the IT department's advisory, if people do not link their PAN to Aadhaar by March 31, 2023, their PAN number will become inactive. Under current regulations, the government has made the linking of PAN and Aadhaar number mandatory. While the linking process is required by law, it also benefits the government and taxpayers.
2. The Aadhaar number contains all of an individual's financial information. The card contains all information, from large money transfers to UPI. Furthermore, linking PAN with Aadhaar will assist IT departments in tracking and noting all taxpayer transactions in order to detect fraud or tax evasion.
3. Linking PAN to Aadhaar also aids in identifying people who have multiple PAN cards. Because Indian residents only have one Aadhaar, the preference for PAN will further track that individual only carries one PAN card in their name.
4. PAN and Aadhaar will also make the process of filing and verifying income tax returns easier. Because Aadhaar contains all of an individual's information, including biometric verification, linking will result in a faster return filing process.

Where is a PAN card required?

PAN is a ten-digit number required to initiate all financial transactions. Individuals' PAN identities are used by the IT department to track money in and out.

The PAN number is used to pay income tax, receive tax refunds, and communicate with the Income Tax Department. Furthermore, PAN cards are used to initiate larger transactions worth more than Rs 50,000, such as transferring money to a bank or purchasing new vehicles.

What if you don't link your PAN and Aadhaar by the deadline?

If you do not link your PAN to your Aadhaar by March 31, 2023, your PAN will become inactive on April 1, 2023, according to the tax department.

How to Check the Status of Aadhaar-PAN Linking

If you're wondering whether your Aadhaar and PAN are linked, here's a quick way to find out.

a) Go to www.incometax.gov.in to file your income tax electronically.

b) Under Quick Links, look for the 'Link Aadhaar Status' option.

c) Enter your PAN and Aadhaar number, then select 'View Link Aadhaar Status'.

d) A message will appear on your screen if your PAN is linked to your Aadhaar. Your PAN 10 digits PAN> will be linked to Aadhaar number 12 digits Aadhaar card number>.

How to Link your PAN card with the Aadhaar Card

• You can link your PAN-Aadhaar online or by sending an SMS from your registered phone number to either 567678 or 56161. By visiting the income tax portal and paying the late fee, you can also link the two identity cards online. To link your PAN and Aadhaar online, go to incometax.gov.in/iec/foportal.
• Navigate to the 'Quick Links' section, scroll down, and select the 'Link Aadhaar' option.
• Enter your name, phone number, Aadhaar number, and PAN number now.
• Verify by selecting 'I validate my Aadhaar Details'.
• Click the 'Continue' button.
• To validate the process, enter the OTP you received on your registered mobile number.
• Your PAN will be linked to Aadhaar after you pay the penalty fee.