Why you need to link Aadhaar-PAN before Mar 31: Rules explained in 5 points

New Delhi, Mar 30: If you are yet to link your Permanent Account Number (PAN) with Aadhaar number, do it so before March 31, 2022. Those who fail to do so will attract a penalty of Rs 10,000. The move aims to eliminate duplicate PAN cards that are used for various illegal financial transactions.

What will happen if PAN is not linked with Aadhaar?

In case you fail to link your PAN with your Aadhaar, then as of 31 March, 2022, your PAN will become inactive.

If you were to miss the deadline to link the two, you will also be liable for all the consequences under the IT Act for not furnishing, intimating or quoting the PAN, which includes paying higher income tax.

Inoperative means, you will not be able to use your PAN to conduct financial transactions wherever quoting of PAN is mandatory. Some of these financial transactions include opening of a bank account, investing in a fixed deposit, filing of income tax returns etc.

Further, as per rules, any person who quotes a cancelled or inoperative PAN is liable to pay a fine of up to Rs 10,000 under section 272B of the Income Tax Act.

For whom is Aadhaar-PAN linking not compulsory?

Aadhaar-PAN linking presently does not apply to any individual who is:

• Not a citizen of India;
• a non-resident as per the Income Tax Act, 1961;
• of the age of eighty years or more at any time during the previous year;

However, these exemptions may change or be revoked later.

How to link Aadhaar card through e-Filing website

• Go to Income Tax e-filing portal incometaxindiaefiling.gov.in
• Click on Link Aadhaar' section on the left side of the portal
• Enter PAN number, Aadhaar number, name and the CAPTCHA.
• Click on the 'Link Aadhaar' button.
• After verification, your PAN Aadhaar Link status will become available.

How to link Aadhaar card to PAN card via SMS

To link your PAN with Aadhaar, type UIDPAN (12-digit Aadhaar number) (10-digit PAN number) and send it to 567678 or 56161.

How to check Aadhar linked with PAN

If you have already linked your PAN with your Aadhaar, you can check the status both online as well as offline.

Visit www.incometaxindiaefiling.gov.in/aadhaarstatus Enter PAN and Aadhaar Number

Click on 'View Link Aadhaar Status' Your status will appear in the next screen

What should I do if my PAN becomes inoperative?

If your PAN becomes inoperative, you will need to use the Link Aadhaar service on the e-Filing portal and link your Aadhaar. Your PAN will become operative after you link it.