New Delhi: Aadhaar is a 12-digit unique identification number issued to every citizen of India to identify and verify one’s identity. Aadhaar is issued by the Unique Identification Authority of India (UIDAI). On the other hand, Permanent Account Number or PAN is a 10-digit unique identification alphanumeric number (containing both alphabets and numbers) used for identifying taxpayers of India issued by the Income Tax Department.

The Government of India has made it mandatory to link PAN with Aadhaar for every PAN-holder leaving the exempt category.

However, now the IT Department has extended the date to link PAN with Aadhaar till June 30, 2023 with a penalty of Rs 1,000 which was March 31, 2023 earlier. Adding to it, the Government also made it clear that unlinked PAN cards and Aadhaar will become inoperative from 1st July 2023.

For individuals wondering why is it important to link their PAN with Aadhaar, below are some points justifying it-

• PAN – Aadhaar linking is now important for filing Income Tax Returns (ITR)
• Without linking PAN- Aadhaar one will find it difficult to avail of facilities like applying for a passport, obtaining subsidies or opening a bank account.
• To benefit from pension schemes and scholarship schemes.
• For issuance of a new PAN card.

While linking Aadhar with PAN card is mandatory for all, some lies under the exempt category:-

• Individuals residing in Jammu and Kashmir, Assam and Meghalaya.
• A non-resident taxable person as per the Income-tax Act, 1961.
• Super Senior Citizens( Individuals over 80 years of age).

For linking PAN with Aadhaar there are 2 steps:

1. Paying fee on the NSDL portal under Major head (0021) and Minor head (500) for AY 2023-24.

2. Submitting the Aadhaar – PAN link request

1. STEPS TO FOLLOW FOR THE FIRST PROCEDURE:-

a. Go to the tax payment page of the NSDL portal and select Challan no./ITNS 280 under the Non-TDS/TCS category.

b. On the next page, select head ‘(0021)’and then ‘(500)’.

c. Scroll down and select the mode of payment and after entering all the required details like (PAN, address and select AY 2023 – 24).

d. Now make the payment and submit the PAN-Aadhaar link request.

2. STEPS TO FOLLOW FOR THE SECOND PROCEDURE:-

Under this step, there are further 3 ways to link your Aadhaar with PAN.

A. Linking of Aadhaar and PAN through SMS

• Send an SMS to either 567678 or 56161 from your registered mobile number in the following format:

UIDPAN<SPACE><12 digit Aadhaar><Space><10 digit PAN>

Example: UIDPAN 123456789123 AKPLM2124M

B. By not logging into your Account

• Go to the Income Tax e-filing portal and then under Quick Links, click on the ‘Link Aadhaar’ tab.
• After that enter your PAN and Aadhaar number.
• Now in this step an error can appear reading ‘PAN is already linked with another Aadhaar’.
• In this case, you may lodge a grievance or contact the e-filing helpdesk to un-link your Aadhaar and PAN if your PAN is linked with another Aadhaar.

After validating your PAN and Aadhaar, there could be 3 scenarios:

Scenario 1: After making the payment of challan on NSDL(now Protean) Portal and payment details are also verified on the e-filing portal.

After validating PAN and Aadhaar, a pop-up message will appear “Your payment details are verified”.

Now, click the ‘Continue button to submit the Aadhaar link’ request.

Enter the required details and click the ‘Link Aadhaar’ button.

Now enter the 6-digit OTP received on your mobile number and validate.

A success message will appear on your screen and then check the Aadhaar-PAN link status.

Scenario 2: Payment details not being verified on e – filing portal.

In this case after validating PAN with Aadhaar a pop-up message “Payment details not found” can appear. In this situation, you must first complete the transaction on the NSDL Portal. However, if you have already paid the fee on NSDL Portal you can submit the link request only after 4-5 days.

Scenario 3: In the case of record for PAN and minor head code 500 is present, but challan is already occupied for linking.

After validating PAN and Aadhaar, again a pop-up message will appear “Payment done earlier for this PAN has already been used for Aadhaar – PAN linking”.

In this case, you will need to make a fee payment again on NSDL and then submit the Aadhaar – PAN linking request only after 4-5 working days.

C. By logging into your account:

• If you are not registered, make sure you register yourself on the Income Tax e-filing portal.
• Now log onto the e – filing of the income tax department by entering the user ID.
• After confirming your secure message and entering the password, click ‘Continue’ to proceed further.
• On the website, click on ‘Link Aadhaar’.
• Enter details, such as name, date of birth and gender. Verify all the details on the screen mentioned on your Aadhaar card.
• It is mandatory to select the check box that reads ‘I agree to validate my Aadhaar details’.
  Click on the ‘Link Aadhaar’ button.
• A pop-up message will appear informing you that your Aadhaar number has been successfully linked to your PAN card.