Linked PAN with Aadhaar? Do it before THIS date to avoid 'consequences'; Step -by-Step guide to link online or via SMS explained

Permanent Account Number (PAN) is a ten-digit unique alphanumeric number issued by the Income Tax Department. The government has made it mandatory to link PAN with Aadhaar.

Recently, the last date for linking PAN with Aadhaar has been extended till September 30, 2021. Earlier, the last date for PAN Aadhaar linking was June 30, 2021.

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Linking of PAN with Aadhaar Number

As per the information provided by Income Tax Department, the Finance Act, 2017 had inserted a new section 139AA in the Income-tax Act, 1961, requiring every person who is eligible to obtain Aadhaar to quote his Aadhaar number while applying for PAN or furnishing return of income with effect from July 1, 2017.

If any person does not possess the Aadhaar Number but he had applied for the Aadhaar card then he can quote Enrolment ID of Aadhaar application Form in the ITR. Section 139AA further provides that every person who has been allotted PAN as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number shall intimate his Aadhaar number on or before a date to be notified to the Income-tax Department.

In case of failure to intimate the Aadhaar number, PAN allotted to the person shall be made inoperative after the date so notified.

Consequences for not linking PAN with Aadhaar Number

The Central Board of Direct Taxes has notified Rule 114AAA prescribing the manner and consequences if PAN becomes inoperative. The Rule 114AAA(2) provides that where a person, whose PAN has become inoperative, it shall be deemed that he has not furnished, intimated or quoted the PAN, as the case may be, and he shall be liable for all the consequences under the Act for not furnishing, intimating or quoting the PAN.

However, the person can reactivate his PAN by subsequently intimating his Aadhaar to the Department.

Fee for default relating to intimation of Aadhaar number

The Finance Act, 2021 has inserted a new Section 234H to levy a fee for default in intimating the Aadhaar Number. If a person is required to intimate his Aadhaar under Section 139AA and such person fails to do so, he shall be liable to pay a fee, as may be prescribed, not exceeding Rs 1,000 at the time of making such intimation.

Therefore, if the person fails to link PAN-Aadhaar by due date, he shall be liable to pay a fee, maximum of Rs 1,000. This fee shall be in addition to the other consequences the person has to face if PAN becomes inoperative due to non-intimation of Aadhaar.

Aadhaar number can be linked with PAN by any of the two ways:

Using SMS facility

Taxpayer who wants to link their Aadhaar number with PAN is required to send SMS to 567678 or 56161 in following format:

UIDPAN<space><12 digit Aadhaar><space><10 digit PAN>

Aadhaar number will be linked with PAN if name and date of birth of taxpayer is identical to Aadhaar and PAN.

Using facility on e-Filing portal https://www.incometax.gov.in

Taxpayer is required to login on e-Filing portal using his registered username and password. After login, he will get the “link Aadhaar” option under his ‘Profile Settings’.

Details such as name date of birth and gender will already be mentioned as per the PAN details. Verify the PAN details on screen with the ones mentioned on your Aadhaar. Please note that if there is a mismatch, you need to get the same corrected in either of the documents.

If the details match, enter your Aadhaar number and click on the “link now” button. After that enter the OTP received on the registered mobile number.
A pop-up message will inform you that your Aadhaar has been successfully linked to your PAN.