You have heard all the fuss about linking Aadhaar card with PAN card. There is a new deadline and you need to adhere by the rules.
Question is why to link Aadhaar Card with PAN card?
One simple thing – it is an order from the Supreme Court of India. A supreme court bench consisting of Justice A. K. Sikri and Justice S. Abdul Nazeer stated that in order to file Income Tax returns, it is mandatory to link Aadhaar card with PAN card.
There are at least three reasons why Supreme Court decided to pass such an order. The reasons are:
Fake PAN Removal: Central Board of Direct Taxes (popularly known as CBDT) released a report in which it was stated that there are 10.52 lakh duplicate and fake PAN cards in India. One easy way of removing those duplicate and fake PANs is to link them with Aadhaar. Since a person can have only one Aadhaar number, only one PAN card can be linked to a single Aadhaar number. Possibility of a person holding multiple PAN cards will be rooted out.
Seamless Document Verification: Once Aadhaar card or number is linked to PAN card, it will allow seamless verification of data entered in the PAN application form. This means that falsification of data in PAN will no longer be a feasible option.
Tax Compliance: When it comes to any high-value transaction such as purchase of property; many people do not quote their PAN. This helps them to save taxes by illegal means. Supreme Court took notice and allowed linking of Aadhaar and PAN. Once linked, a person cannot hide high-value transactions any longer.
In case you do not intend to link your Aadhaar number and your PAN, you need to think over and over again.
As per central government notification dated March 21, 2019, all PANs will be rendered inoperative is Aadhaar is not linked with PAN. Once the PAN becomes inoperative, it cannot be quoted when required. There is no way of reactivating the PAN once it becomes inoperative.
There is a difference between PAN becoming invalid and PAN becoming inoperative. If your PAN becomes invalid, it will be considered that you never had a PAN. If your PAN become inoperative, your PAN remains but you cannot use it until you link it to Aadhaar. However, the exact definition of ‘inoperative’ is yet to be given by the government.
The consequences of PAN becoming invalid are dreadful. Example? You cannot quote your PAN means that you cannot carry out financial transactions where PAN is necessary. For instance, if you want to open a bank account, you cannot open it because PAN is mandatory. You cannot open demat account, you cannot buy vehicles, you cannot purchase mutual funds of amount exceeding INR 50,000 etc.
Anyone holding a PAN as on July 2017 has to comply.
The initial deadline for the linking was March 31, 2019 but was later extended to September 30, 2019. This date has now been further extended to December 1.
Now that we have a fairly good idea of why Supreme Court of India made it mandatory to link Aadhaar and PAN and we also know what happens when Aadhaar is not linked with PAN, it is about time we look into the process of linking the two.
Link Aadhaar card with PAN card using SMS
For this process you need three things:
A mobile phone (doesn’t matter if you have a smartphone or a feature phone)
Your Aadhaar number
If you have all three, fire up your messaging app and type the following SMS:
Example: UIDPAN 123456789105 AWSP0205P
In the above example, the 12-digit number (123456789105) is Aadhaar number example. It is just a random number we wrote. In case it matches with someone’s actual Aadhaar number we are sorry and we never intended to do that.
AWSP0205P is an example PAN that we created on our one and in case it turns out to be an actual PAN of anyone, we are sorry about that.
Note that there is a space between UIDPAN and the Aadhaar number and a space between Aadhaar number and PAN.
Once you have typed the SMS with your Aadhaar and your PAN, send the SMS to 56161.
That’s all. Now wait until the two are linked.
Link Aadhaar card with PAN card through e-filing website
This is an online method in which you will need access to the following:
A computer/laptop/smartphone connected to the Internet.
Your Aadhaar number
Once you have all the requirements fulfilled, follow the steps below:
Step 1: Visit e-filing website at this link.
Step 2: You will see a form. In the form, provide the following details:
- Your PAN
- Your Aadhaar
- Your name as printed on Aadhaar
If your Aadhaar card does not have your name printed on it, you still need to fill in your name and then tick the small check box next to the text which reads: “I have only year of birth in Aadhaar Card.”
Step 3: Tick the small check box next to the text which reads: “I agree to validate my Aadhaar details with UIDAI.”
Step 4: In the captcha code segment of the form, fill in the image code in the box provided right below the image. Do keep in mind that the code is case sensitive. If you cannot read the text in the image, click on the tiny refresh button beside the code and a new code will appear. Keep doing that until you see the image that you can read clearly.
Step 5: Click on the ‘Link Aadhaar’ button in green color.
That’s all! Your Aadhaar will be linked to your PAN card.
The process to link Aadhaar card with PAN card is very simple and straight forward. Please go ahead and link these two documents to avoid actions from the authorities.