There have been quite a few significant changes in the financial space in the country in the past few years. One of the more significant ones is Aadhaar PAN linking. Though the decision has been a debated one, there is no denying the fact that it is required for some critical transactions. 

If you do not link Aadhaar with PAN, you will not be able to file your tax returns. Similarly, for financial transactions exceeding INR 50,000 also the linking must be done. The intent behind this exercise is to curb the menace of multiple PAN cards being issued to one individual. 

A recent clause has made Aadhaar PAN linking mandatory. Though the mandate was there earlier also, failing to do so by the 30th of September 2019, would result in your  PAN card being deactivated.. You can not file return of income if your PAN Aadhaar is not linked (except in few states).

Should your tax returns not be processed, there are some benefits that you will miss out on. Here are some of the major ones.

• Successful filing and processing of returns make it easier to apply for a visa if you plan to travel to other countries. Most embassies take a look at the ITR to access the financial stature of an applicant.
• It is not only embassies but banks and financial institutions who also consider your tax returns. Filing your returns on a regular basis makes way for easier loan processing or other financial transactions.
• In the event that you have suffered financial loss in the past, you can carry them forward only if you file your returns diligently. You can use the past losses to off set your income for the future years.
• Your tax return acts as a valid proof of address as well as income.

 Rs 10000 is the penalty for non filing of return within last dates i.e 31st March of Assessment Year.If you do not want to pay the penalty and avail the above benefits filing your returns is the only saving grace. And for that to take place, PAN Aadhar linking is crucial. Taxpayers who haven’t linked their Aadhar and PAN, the following steps will aid you in the process.

Owing to difficulties faced by the taxpayers in linking PAN with Aadhaar, the Income tax department has simplified the process of linking PAN with Aadhaar. Now, you can link your aadhaar even without logging into the Department of income tax (DIT) website.

Steps to easily link your PAN with Aadhaar without DIT login are as follows:

1.Go to https://incometaxindiaefiling.gov.in/
2. You will see a screen as given below. Click on “Link Aadhaar” . Refer to field marked in Red in the image below:

3.After clicking on “Link Aadhar” , you will see a screen as given below:

Enter PAN, Aadhaar no. and ENTER NAME EXACTLY AS GIVEN IN AADHAAR CARD (avoid spelling mistakes) and submit. After verification from UIDAI, the linking will be confirmed. Once, confirmed, the below message will be displayed.

In case of any minor mismatch in Aadhaar name provided by taxpayer when compared to the actual data in Aadhaar, One Time Password (Aadhaar OTP) will be sent to the mobile registered with Aadhaar. Taxpayers should ensure that the date of birth and gender in PAN and Aadhaar are exactly same. In a rare case where Aadhaar name is completely different from name in PAN, then the linking will fail and taxpayer will be prompted to change the name in either Aadhaar or in PAN database.

There is no need to login or be registered on E-filing website. This facility can be used by anyone to link their Aadhaar with PAN.

This facility is also available after login on the e-filing website under Profile settings and choose Aadhaar linking. The details as per PAN will be pre-populated. Enter Aadhaar no. and ENTER NAME EXACTLY AS GIVEN IN AADHAAR CARD (avoid spelling mistakes) and submit.

Taxpayers should use this simplified process to complete the linking of Aadhaar with PAN immediately. This will be useful for E-Verification of Income Tax returns using OTP sent to their mobile registered with Aadhaar.

In case you want to modify/correct your PAN or Aadhaar details, that too can we easily done.
Just click on “Links to Correct Name” below “Link Aadhaar”.

After clicking on that, the below screen will be displayed:

You can click on the relevant link in order to update your PAN and Aadhaar details and you will be redirected to the relevant page ahead. 

To know how to link Aadhaar with PAN using SMS, click here

Conclusion

There has been a lot of flank surrounding linking of Aadhar and PAN in the past. A recent ruling by the honourable Supreme Court makes is mandatory for filing your tax returns. Going forward, this seemingly simple step can put a halt on some major transactions that you carry out.

If you aren’t registered on the e-filing portal of the income tax department, you can still link your PAN and Aadhar. Aadhar PAN linking without income tax login is possible with the help of either SMS service or manual linking with the help of Annexure – I.

The Central Board of Direct Taxes (CBDT) has made way for other ways to link both these identification numbers apart from the e-filing portal. You can directly send an SMS to your service provider to link them. The SMS can be sent either to NSDL or UTI Infrastructure Technology and Services Limited. 

The SMS format is: UIDPAN <space> 12 Digit Aadhar number <space> 10 digit PAN. You need to send the SMS to 56161 or 567678. 

Here is an example of the SMS: UIDPAN 123456789123 ABCDE1234F and send it to 56161 or 567678.

Another alternative method is to visit the service provider of your PAN card. It can either be NSDL or UTIITSL and fill up Annexure – I. You might need to submit supporting documents such as a copy of Aadhar and PAN. Irrespective of which method you choose, do not forget to link them at the earliest.

FAQs

1. How to link PAN with Aadhar?
   There are different ways by which you can link your Aadhar and PAN numbers. You can visit the income tax e-filing website and provide your details and get the linking done. You can send an SMS to your PAN provider and get the numbers linked. Alternatively, you can visit your service provider for PAN and fill Annexure I and submit a copy of PAN and Aadhar each.
   
   
2. Can I file my return if I haven’t linked Pan and Aadhar?
   Linking is mandatory to file the income tax return.