Aadhaar Card is a 12-digit identifying number that may be verified by India’s Unique Authority for Identification (UIDAI). It serves as both identification and proof of residency. PAN, or Permanent Account Number, is a ten-character alphanumeric identity issued by the Department. Under the Central Direct Tax Board’s jurisdiction (CBDT). It is required for income tax filings and serves as identification verification.

If your PAN is not connected to Aadhaar, it will be rendered ineffective as of next month. Furthermore, people who have previously linked their PAN to Aadhaar are unaffected. The Ministry of Finance (CBDT) issued a notice clarifying the PAN-Aadhaar time restriction.

According to the CBDT announcement, “certain media sections have stated that certain PANs that are not connected to the Aadhaar number may be annulled.” The matter has been considered by the national government, and the deadline for notifying the Aadhaar number and integrating PAN with Aadhaar is now —-, unless specifically exempted.

According to the Supreme Court, mentioning an Aadhaar Card is required for the filing of income tax returns and the implementation of a new PAN. According to Section 139 AA(2) of the Income Tax Act, starting of 1 July 2017, any individual having a PAN who is eligible for Aadhaar must notify tax authorities of his Aadhaar number.

On its website, incometaxindia.gov.in, the Income Tax Department has given numerous methods for income tax assesses to link their Aadhaar to PAN.

Benefits of linking PAN with Aadhaar

PAN and Aadhaar are both accepted as proof of identity for Indian residents. The following are the advantages of linking a PAN card to an Aadhaar card:

 Individuals’ Situation

1. Connecting Aadhaar to PAN would make income tax filing considerably easier and more convenient. It will also assist an individual in avoiding the physical and digital signing processes while filing income tax.

2. It also enables an individual to open a bank account electronically without the need for additional documentation.

3. The individual is given the option of using their Aadhaar card to validate their tax filings.

4. It will enable individuals to view all transactions by logging in to Income Tax.

‘In the case of the government,

As Aadhaar is connected to unique biometric identification, the many tax evasion PAN card quandaries would be resolved. It will also assist the government in identifying all transactions, minimizing tax evasion, and raising direct taxation. The problem of black money must be addressed. Tax avoidance is no longer an option. The large taxpayer base would allow the government to cut the tax rate because increasing wages would compensate.

Mistakes that may cause us problems.

The connection can be simply created on the income tax department’s website or even via SMS. However, a lot of PAN card holders are having difficulty connecting since their records with the Income Tax Department or India’s Unique Identity Authority (UIDAI) do not match. PAN cards are issued by the I-T department, whereas Aadhaar cards are issued by the UIDAI. There are at least three scenarios in which the PAN-Aadhaar link is predicted to fail.

In the event that a PAN-Aadhaar name mismatch is discovered,

Previously, the UIDAI had a clause that allowed for linking in the case of small name discrepancies, however that provision was removed in December 2017. If the cardholder’s name changed slightly, Aadhaar authentication was achievable by e utilizing an OTP-based verification at the time.

“It is hereby agreed to terminate the provision of partial matching in demographic authentication in order to exclude any possibility of erroneous identity verification using demographic authentication,” according to a UIDAI memorandum. The Income Tax administration has also requested PAN cardholders to ensure that the Aadhaar number and name as per Aadhaar are exactly the same on the PAN card.

Income Tax PAN Forms:

Part 1: Application for PAN and TAN Allotment

Form NoDescription
Form 49AApplication for allotment of the permanent account number (In the case of Indian citizens/Indian companies/ Entities incorporated in India/ formed Unincorporated entities in India)
Form No 49AAApplication for allotment of the permanent account number (Individuals not being a citizen of India/ Entities incorporated outside India/ formed Unincorporated entities in India)  
Form No 49BForm of application for tax reduction and collecting account number assignment under Section 203A of the Income-tax Act of 1961

Part 1A: Declaration form for a person who had a transaction defined in Rule 114B but does not have a PAN.

Form NoDescription
Form No 60Form for a declaration to be filed by an individual or a person (who is not a company or firm) who does not have a permanent account number and engages in any of the transactions listed in rule 114B.

2) In the event of a mismatch in the person’s date of birth

If you submitted an incorrect birth date in either of the two documents, you are in big trouble. If your date of birth does not match, your Aadhaar vehicle will not be connected to a PAN card. When the sole information on the Aadhaar card is the year of birth, the records on the PAN card should match.

3) In the event of a gender mismatch,

In the worst-case scenario, where either PAN or Aadhaar mentions gender by accident, the linkage is doomed to fail. “The I-T department, like Aadhaar, must confirm your name, gender, date of birth as per the PAN card.

What is the process of Aadhaar and PAN mismatch?

In circumstances of data mismatch, the only solution is to have it corrected. For example, if your name is misspelt in Aadhaar, you can have it fixed by UIDAI. If there is an error on the PAN card, have it fixed by UTI or NSDL, the two institutions in charge of issuing PAN cards. When the adjustment is complete, you will make another successful attempt to finish the link.

Process of linking PAN with Aadhaar

An individual can link his or her PAN card and Aadhaar card in three ways:

1. Access the Income-Tax website online.

2. This can be accomplished by sending SMS.

3. This can be accomplished by completing the form.

Through the Income Tax e-filing website

  1. Visit the Income Tax e-filing portal
  2. Fill out your PAN and Aadhaar card number
  3.  Enter your name in the ‘Name as per AADHAAR’ category.
  4. If you only have the birth year on your Aadhaar card, mark ‘I have the only year of birth on your aadhaar card.’
  5. Check the box next to ‘I accept to validate my Aadhaar details with UIDAI’ if you consent to do so.
  6. Enter the captcha code that appears on your screen.
  7. Select the ‘Link Aadhaar’ option to request the linking of your PAN and Aadhaar.

How to Link Aadhaar to Pan Card via SMS

Aadhaar can also be linked to a PAN by sending an SMS. The procedures are as follows:

1. Enter a message in the UIDPAN12 Digit Aadhaar>10 Digit PAN > format.

2. Send any message to either 567678 or 56161 from your registered mobile number.

3. If the information is correct, the Aadhaar card will be successfully linked to the PAN.

4. Fill out the form to create a PAN-Aadhaar link.

5. Individuals can also manually connect their Aadhaar to their PAN. The individual must go to the NSDL PAN Service Provider and fill out the requisite paperwork.

6. Provide the relevant documents to link PAN with Aadhaar

To link your PAN with Aadhaar contact PhoenixTax one of the best Tax consultant in Tambaram, Chennai.