While reading the verdict on the constitutional validity of Aadhaar, the Supreme Court has allowed PAN to be linked with it. The apex court has also said that it is appropriate to quote Aadhaar number when filing income tax return (ITR) and applying for a new PAN card.
The deadline for linking PAN to Aadhaar has been extended by three months to March 31, 2020, according to a notification from the Central Board of Direct Taxes (CBDT) dated December 30, 2019. As of April 1, 2020, your PAN will become inoperative without adding your PAN to your Aadhaar.
The Government has clarified what will happen once the PAN is inoperative, via a February 13, 2020 notification. As per the notification, those who connect their PAN to Aadhaar after the deadline of March 31, 2020, the PAN will become operational from the date Aadhaar number is intimated.
Here is how you can link your PAN to Aadhaar.
In case you are a listed user at the income tax e-filing website:
In case you are already filed your tax returns, it is likely that your PAN will already be linked to Aadhaar unless you mentioned it when filing ITR during the previous years of assessment. The Income Tax Department does so in the event that information of both is already available with it.
By entering PAN (also your user ID), password and birth date, you can verify if your Aadhaar is already connected to your PAN by visiting www.incometaxindiaefiling.gov.in.
Login to the website, tap the on â€˜Account Settingsâ€™ and select the â€˜Link Aadhaarâ€™ option after logging in and opening your account.
The computer shows a success message once you submit.
In case you are a non-registered user:
If you don't want to register on the e-filing website, you can connect your PAN with Aadhaar through another way. A hyperlink is provided on the e-filing and revenue tax website.
On the e-filing website, simply click on 'Link Aadhaar.' A new form appears where you need to enter information such as PAN, Aadhaar number, and Aadhaar name as per your Aadhaar.
If your Aadhaar card has only one year of birth, then you also need to tick the option: 'I only have one year of birth in Aadhaar card'. Enter the captcha and click on submit. Once successfully submitted, a message appears on your computer that indicates that your PAN is successfully linked to Aadhaar.
Other methods to link your PAN to Aadhaar include sending an SMS to PAN service providers like UTI Infrastructure Technology and Services Limited (UTIITL) and NSDL e-Governance Infrastructure Limited and by filling up the form Annexure-I.
Benefits of Linking PAN with Aadhaar
The benefits of linking of PAN with Aadhaar are as follows:
- Helps the government to do away with fake PAN cards.
- Helps the Income Tax Department identify tax evaders.
- Helps the government stop the circulation of black money.
- Helps you to file income tax returns easily.
What if you fail to link?
The I-T Department will impose Rs. 10,000 penalty if you do not link your PAN card to Aadhaar before March 31, 2020. The I-T Department had earlier said unlinked PAN cards would become inoperative if they weren't connected to Aadhaar before the deadline.
In case the PAN is inoperative, the assessing officer will charge Rs. 10,000 as per section 272B of the Income Tax Act. Approximately 17.58 crore PAN cards were not linked to Aadhaar as per the I-T Department, as of 15 February 2020.
The writer is CEO, BankBazaar.com