The last date for the PAN Aadhar link as mandated by the government was 31st March 2022. However, per the new notification, this date is 31st March 2023. The government will charge a fine of ₹ 500 for the first three months and ₹ 1000 after that if a person fails to perform the Aadhaar PAN link before 31st March 2022. So let’s get to know what are these 2 entities and why Aadhaar PAN link is essential for the government and the user.
Pan Card And Its Benefits
PAN stands for permanent account number, which the income tax department issues. It is a unique alphanumeric identity, 10 digits in length, that tracks the user’s financial transactions. There are certain benefits of having a PAN card which include the following:
- Bank account or Demat account opening: To operate a bank account or to trade on the stock market, one needs to have PANcard.
- Start a business: It is mandatory in India to have a PAN card if you want to begin a startup or a company.
- Tax deductions: There is a vast difference in the TDS deduction slab if an account holder has a PAN card linked with the account.
- Income tax: PAN card is crucial for income tax filing and income tax returns.
- Purchase of foreign currency: You need to have a PAN card to purchase a foreign currency amounting to ₹ 50,000 or greater.
Aadhar Card And Its Benefits
Aadhaar is essentially a one-stop identity solution for Indian citizens. It is a highly flexible, user-friendly 12-digit identification number. The issuing authority for Aadhar is UIDAI. Any user can easily verify the Aadhar online. Users can request changes as well as track these changes. This identity platform doesn’t require people to carry a physical copy as eAadhaar works with equal efficacy.
Why Is The Aadhaar PAN Link Important?
For individuals, the Aadhaar PAN link proves beneficial for filing tax return filings as sending out multiple files like e-signatures and receipts to the income tax department will no longer be necessary. Instead, Aadhaar verification will do that job.
For the government, it will provide an excellent audit trail, preventing any instances of tax stealing. This will increase government revenues and improve the financial conditions of the country. This will also put an end to the curse of black money.
The Procedure To Check Aadhaar PAN Link Status
It is an effortless procedure, and you can do it via SMS or online. To check the Aadhaar PAN link status online, follow the below-given steps:
- Step 1: open a browser and go to the official website of the income tax department.
- Step 2: Select the “Link Aadhar Status” under the “Quick Links” section on the website.
- Step 3: Fill in your PAN and Aadhar identification numbers and click the “check” button.
- Step 4: The following screen will show your Aadhaar PAN link status.
A second way to check is via SMS. Follow the below-given steps to check the Aadhaar PAN link status:
- Step one: send an SMS to 567678 or 56161 in the following format
UIDPAN <12 digit Aadhaar number> <10 digit Permanent Account Number>
- Step 2: go through the message received and reply stating the status of your Aadhaar PAN link.
Steps to link PAN with Aadhar
You are missing out on a lot if you have not linked PAN to your Aadhar card. Not only a personal loss, but you are also contributing to the financial loss of the country. Thus, follow the steps below to link your pain with your Aadhar card and avail yourself of the benefits.
- Open the official Income Tax Department filing website on your browser.
- Select the link Aadhar option.
- Fill in your PAN and Aadhar identity codes.
- Click on the link Aadhar button.
To perform the same task via SMS, send an SMS on 567678 or 56161 in the format ‘UIDPAN<12 Digit AADHAAR number><10 digits PAN Number>
The PAN Aadhar link is crucial for the transparency and efficiency of the taxation process. Your step will help you and the country in the long run. If you have not linked your pan with your Aadhar card, do so at the earliest and keep track of your PAN Aadhar link status to avoid any penalty.