..Every Indian citizen is given an Aadhaar card, which serves as a centralized and universal identifying number. The government is gradually using the Aadhar Card, a biometric record that maintains a person's information in a database, as its primary data source for citizen services and public welfare. Additionally, Nirmala Sitaraman, the finance minister, recently suggested a new feature in Budget 2020 that would enable users to quickly obtain a Permanent Account Number (PAN) using their Aadhaar without submitting a comprehensive application form. In this article, we'll talk about PAN Aadhar Link and how to link a PAN with an Aadhar card.
What is an Aadhaar card?
Indian citizens utilize the 12-digit Aadhaar ID system based on their biometric and demographic information. The Unique Identification Authority of India collects and stores this person's personal information in its databases (UIDAI).
Now it has become mandatory for every person in India who pays taxes by government regulation to link their PAN card to their Aadhaar Card. Every person was supposed to complete this link by July 1st.
What is a Pan Card?
It becomes easier to identify different taxpayers in the nation using their Permanent Account Numbers, or PANs. A 10-digit unique identity alphanumeric number called a pan card is given to Indians, typically those who pay taxes.
Difference Between PAN Card & Aadhaar Card:
A Permanent Account Number is used primarily to track and identify each financial transaction a person makes. A PAN card's primary responsibility is to ensure that every citizen fulfills their tax-paying obligation. The Central Board for Direct Taxes, also known as CBDT, carefully monitors its issuance by the Income Tax Department.
An Aadhaar Card number is a unique identification number (UID) that the Unique Identification Authority of India issues, a central government body works in India (UIDAI). Every citizen of India registered will be included in the government's database. It also gathers a person's photo, fingerprints, and iris scans in addition to their biographical data. By just comparing an individual's data with the information in the system, it is pretty simple to identify them with this information system.
Is it mandatory to link Pan Card & Aadhar Card?
Yes, it is compulsory to link the Aadhar card and PAN Card to executing income tax-related duties, including filing returns on revenue. Anyone who has received a PAN and is qualified to receive an Aadhaar number must link the two.
Linking clause for the PAN-AADHAR Card
The Income Tax Laws (Third Amendment) 2022 proposal was made by the CBDT. CBDT accepts the sub-rule of Rule 114 (5A). If someone notifies someone else of their Aadhaar number between 01-04-2022 and June 30, 2022, they must pay a fee of Rs. 500; in all other cases, they must pay Rs. 1,000, according to Sub-rule (5A). Your PAN will become inactive the following year on April 1, 2023, if it is not linked to Aadhaar by March 31, 2023. You won't be able to, among other things, file a tax return, open a bank account, or invest in mutual funds if your PAN is no longer valid.
According to the new Rule 114 sub-rule (5A), if someone ties their Aadhaar number to their PAN card after the deadline, they are responsible for paying the following amounts: Rs. 500 between April 1, 2022, and June 30, 2022; in all other cases, Rs. 1,000. When the Aadhaar number is provided, the person is in charge of covering any necessary costs.
Additionally, Rule 114AAA's subsection (2) states that it shall be presumed that someone has not disclosed, intimated, or cited their PAN if asked to do so, but their PAN is no longer valid. As a result, you will be liable for any consequences of offering, disclosing, or citing PAN.
Procedure to link aadhar to pan card
The income tax department just approved the PAN-Aadhaar link to the tax site. But before you can link your PAN to your Aadhaar, you must pay the necessary fee. Two crucial steps are:
Step: 1
Payment of the necessary money for the NSDL portfolio's Major Head (0021) and Sub-Head (500) of AY 2023–24 (now Protean). It will include payments of Rs. 500 or Rs. 1000 on a single challan, and the assessment year should be 2023–2024.
Step: 2
Send a request for an Aadhaar link to the e-Filing portal four to five working days after making a payment through the NSDL (now Protean) website. Go to the income tax portal after 4-5 working days. Log in at the income tax filing website. On the profile page, there is an option to link PAN with Aadhaar.
After choosing the option, you must enter the PAN and Aadhaar numbers. When you enter the number, the payment confirmation screen will appear on the gateway. When verifying a payment, you must state your name exactly the same as it appears on your Aadhaar. You have to input your OTP after providing a name. To link your phone number to your Aadhaar, you must first register. After the successful generation of OTP, the connecting process will be completed.
How to confirm that your PAN card and Aadhaar card are linked?
- Follow the instructions below to see if your PAN and Aadhaar number have already been linked.
- Visit the website and complete the form there.
- From the Quick Links area, choose PAN-Aadhaar Link Status.
- You must provide your Pan and Aadhaar numbers.
- You should select View Aadhaar Status Link from the drop-down menu.
- A pop-up will display to confirm if your PAN is linked to your Aadhaar number.
Conclusion
Both your PAN card and Aadhaar cards are at the risk of being penalized and losing their validity if they are linked. According to Section 234H of the Income Tax Act of 1961, a fine will be imposed on you. Although the exact fee amount is unknown, it will not be more than Rs 1,000 if you link it after the deadline.
Request assistance from our experts in order to link PAN with Aadhar card. You can get help from Lawgical India with the filing procedure. You can get in touch with us by leaving a remark in the comment section.
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