It has become a mandatory process to link your PAN with Aadhaar. This is an important process because this will allow your income tax returns to be processed. Linking of your PAN with Aadhaar is also required if you are carrying out banking transactions for amount of Rs.50,000 and above.
The process to get your PAN linked with Aadhaar is very simple. We will have a look at some of the steps you can follow to link your PAN with Aadhaar.
How to Link PAN Card with Aadhaar Card?
Process to Link PAN Card with Aadhaar with Penalty
The procedure to link the PAN Card with the Aadhaar with a penalty is mentioned below:
- Visit https://www.incometax.gov.in/iec/foportal.
- Under the ‘Quick Links’ section, you will find the ‘Link Aadhaar’ option, click on it.
- On the next page, enter your name, mobile number, Aadhaar number, and PAN.
- Verify the information that is provided by clicking on the ‘I validate my Aadhaar Details’ option.
- Click on ‘Continue’.
- You will receive an OTP on the registered mobile number. Enter the OTP and click on ‘Validate’.
- Once the penalty is paid, the process of linking the PAN and Aadhaar will be complete.
Ways to Linking PAN with Aadhaar
There are two ways through which you can link PAN and Aadhaar. These are:
1. Through the Income Tax e-filing website
2. Sending an SMS to 567678 or 56161
1. Linking PAN with Aadhaar Online ( Through the e-filing Website)
Step 1: Visit Income Tax Site by clicking on the link https://www.incometax.gov.in/iec/foportal.
Step 2: Under ‘Quick Links’, click on ‘Link Aadhaar’. Provide the PAN, Aadhaar number, and name as mentioned in the Aadhaar card
Step 3: Enter details such as PAN Number, Aadhaar number, your name on Aadhaar, and your mobile number, Tick the square if only the birth year in mentioned in the Aadhaar card, and also tick the box where you agree to get your Aadhaar details validated. Click on ‘Link Aadhaar’.
Step 4: Enter the Captcha code. (Visually challenged users can request for an OTP instead of the captcha code. The OTP will be sent on the registered mobile number)
2. Linking PAN with Aadhaar by Sending an SMS
To link PAN with Aadhaar by sending an SMS. You need to follow the steps mentioned below:
Step 1: Type UIDPAN 12-digit Aadhaar 10-digit PAN on your mobile
Step 2: Send it to 567678 or 56161
Importance of Linking PAN Card with Aadhaar Card
Both the PAN card as well as the Aadhaar card are unique identification cards that serve as proof of identity that are necessary for registration and verification purposes.
The government has urged all entities to link their PAN cards with their Aadhaar cards. This is being done for the following purposes:
Prevent Tax Evasion:
By linking the Aadhaar and PAN cards, the government will be able to keep tabs on the taxable transactions of a particular individual or entity, whose identity and address will be verified by his Aadhaar card. This will effectively mean that every taxable transaction or activity will be recorded by the government.
As a result, the government will already have a detailed record of all the financial transactions that would attract tax for each entity, making tax evasion a thing of the past.
- Multiple PAN Cards:
Another reason for linking PAN with Aadhaar is to reduce the occurrence of individuals or entities applying for multiple PAN cards in an effort to defraud the government and avoid paying taxes.
By applying for more than one PAN card, an entity can use one of the cards for a certain set of financial transactions and pay taxes applicable for those. Meanwhile, the other PAN card can be used for accounts or transactions that the entity wishes to conceal from the Income Tax department, thereby avoiding paying tax on them.
By linking the PAN and Aadhaar card, the government will be able to link the identity of an entity through his/her Aadhaar card, and subsequently have details of all financial transactions made through the linked PAN card. If there are multiple PAN cards registered under the same name, the government will be able to identify the same and take corrective action.
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