How to Link Aadhaar with PAN to File Income Tax Returns

If you are going to file your income tax returns this year, this is an important read. It is mandatory to link your Aadhaar with PAN to file your income tax returns. The last date to link your Aadhaar with a PAN card is extended till June 30, 2023.

This article explains the procedure to link your Aadhaar and PAN cards so that you can be ready for the tax filing season.

How to Link Aadhaar with PAN to File Income Tax Returns

When filing your income tax return, it is crucial to link Aadhaar and PAN unless the taxpayer is exempted under some instances. These include the following:

1. Non-Resident Indians (NRI), Persons of Indian Origin Card (POI), Overseas Citizenship of India (OCI), etc., who are conducting their businesses in India do not have to link PAN and Aadhaar card.
2. Foreign nationals residing in India are exempted from linking their PAN and Aadhaar card mandatorily.
3. People residing in Assam, Meghalaya and Jammu &Kashmir are exempted from linking the two documents.
4. People above 80 are also exempted from linking PAN and Aadhaar cards.

Procedure for Linking Aadhaar Card and PAN Card

Linking via Online Method

1. Visit the ITR website (www.incometaxindiaefiling.gov.in/home) for e-filing PAN Aadhar linking process.
2. You can go on the quick links as mentioned on the homepage, where you can find a LINK AADHAAR option (https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar)
3. Enter your Aadhaar and PAN number
4. Enter your name as per your Aadhaar card.
5. Tick the box, ” I have only Year of Birth mentioned in Aadhaar card” this applies only to those who have just the birth year mentioned in place of Date of Birth (DOB). You also have to select the option that says you agree to validate your details.
6. Click on the Link Aadhaar button.
7. On the next screen, you will have to enter an OTP that is sent to your mobile number.

Watch this Video to Learn Linking Aadhaar Card with PAN Card

Note - It is mandatory to link your Aadhar Card with PAN Card before 30th June 2023 as per the regulations of the Government of India. If it is not linked within the stipulated time, the PAN Card will tend to become inoperative.

Penalty for Delayed Linking of PAN and Aadhar Card

An individual may be liable to pay a penalty charge if the PAN Card and Aadhar card are not linked. Such a penalty is charged by the Income Tax Department of India. 

If you are a Groww User, Note this

• The penalty levied for not linking PAN Card and Aadhar card is charged by the Income Tax Department and not by Groww.
• Once the Aadhar Card is linked to the PAN Card, it will take 4-5 working days for the 'PAN Aadhaar link status' to be updated on Groww because of delays on the external agencies. To check PAN and Aadhar Linking status, visit https://eportal.incometax.gov.in/iec/foservices/#/pre-login/link-aadhaar-status
• If PAN and Aadhar Card linking is not completed, Groww users will not be able to trade on Groww. Also, if the linking is not done, the users who do not have a Groww account will not be able to activate one after the deadline. Although, as an existing Groww user, you can access your account.

Takeaway

An Aadhaar card provides multiple benefits to a user, including Direct Benefit Transfer, Jan Dhan Yojana accepting Aadhaar, etc. Similarly, your PAN card is used for various financial transactions every day.

Therefore linking the two documents will allow the government to curb incidents of tax evasion and track every transaction. So, link your Aadhaar with PAN if you haven’t already!