According to the current rules released by the Income Tax Department, all consumers must now link their PAN and Aadhaar numbers. The linking of your PAN and Aadhaar has become a requirement. This is a crucial step since it allows for the processing of your tax returns. If you do banking transactions worth more than Rs.50,000, you must link your PAN with Aadhaar.
If you haven’t done so already, the procedure is straightforward and detailed in this post. The Act now states that if a PAN is not connected to Aadhaar by a certain date, it will become invalid.
What is PAN Card?
The Permanent Account Number, or PAN, is a system for identifying different types of taxpayers across the country. PAN is a 10-digit alphanumeric number (which includes both alphabets and numbers) assigned to Indians, mostly those who pay taxes.
When an entity is assigned a PAN, the Income Tax Department also issues a PAN Card. PAN Card is a tangible card that contains your PAN, as well as your name, date of birth (DoB), and portrait. Copies of this card can be used to prove your identification or date of birth. Because it is unaffected by changes in address, your PAN Card is valid for life.
PAN card eligibility
- The following taxpaying entities are required to have a Permanent Account Number under section 139A of the Income Tax Act:
- Anyone who has paid or is obliged to pay tax to the Internal Revenue Service. This will be determined by the tax brackets.
- Any individual who, in any year of assessment, makes a yearly turnover of more than Rs.5 lakh through a business or professional practise.
- Importers and exporters who must pay any type of tax or duty under the Income Tax Act or any other applicable law
- Trusts, charity organizations, and associations of all kinds.
- Minors, individuals, HUFs, partnerships, businesses, bodies of individuals, trusts, and other tax-paying entities should all apply for PAN card.
The Benefits of Having a PAN
- PAN Card contains information such as a person’s name, age, and photograph, it can be used as a legal identity evidence throughout the country.
- The best approach to maintain track of your tax payments is to use a PAN. Otherwise, because your tax payment cannot be validated, you may be obliged to pay it many times.
- Because each entity’s PAN is unique, it’s nearly hard to use it for tax evasion or other nefarious objectives.
- Electricity, telephone, LPG, and internet connections can all be obtained with a PAN Card.
What is an Aadhaar card?
An Aadhaar card is a centralized and universal identifying number that is issued to every citizen of India. The Aadhar card is a biometric document that saves a person’s personal information in a government database, and it is quickly becoming the government’s primary source of public welfare and citizen services.
Eligibility for an Aadhaar Card
The following people are eligible for an Aadhaar card:
An Aadhaar card is available to any Indian citizen (including infants and minors). The Aadhaar card is for adults, while the Baal Aadhaar card is for children under the age of five. NRIs and foreigners who have been in India for more than a year are eligible for the Aadhaar. It is proposed that non-resident Indians with Indian passports receive an Aadhaar card immediately upon arriving in India, rather than waiting 180 days.
Linking your PAN card to your Aadhaar card is really important.
PAN and Aadhaar cards are both one-of-a-kind identification cards that serve as proof of identity and are required for registration and verification. The government has advised all businesses to link their PAN and Aadhaar cards. This is being done for a variety of reasons:
Prevent Tax Evasion: By integrating the Aadhaar and PAN cards, the government would be able to keep track of a specific individual’s or entity’s taxable transactions, as his Aadhaar card will verify his name and address. This practically means that the government will keep track of every taxable transaction or activity.
As a result, the government will have a full record of all financial transactions that are subject to taxation for each organisation, effectively eliminating tax evasion.
Multiple PAN Cards: Another rationale for integrating PAN and Aadhaar is to limit the number of people and businesses that apply for multiple PAN cards in order to defraud the government and avoid paying taxes.
An entity can utilize one of the cards for a specific set of financial transactions and pay the taxes associated with those transactions by applying for several PAN cards. Meanwhile, the other PAN card can be used to conceal accounts or transactions from the Income Tax Department, allowing the company to avoid paying tax on them.
The government would be able to identify an entity’s identification through his or her Aadhaar card, and then have records of all financial transactions performed through the associated PAN card, thanks to the PAN and Aadhaar card being linked. The government would be able to identify several PAN cards registered under the same name and take corrective action if this occurs.
What should I do? If I am unable to link PAN with Aadhaar number.
If you are unable to link your PAN with Aadhaar, you must visit your nearest PAN Centre and submit a signed Aadhaar seeding form. You must bring all essential documents, including your PAN and Aadhaar, along with the Aadhaar seeding form. The physical seeding of Aadhaar with your PAN, on the other hand, is a fee-based service.
The Advantages of Linking Your PAN to Aadhaar
The following are some of the advantages of integrating your PAN with Aadhaar:
- It eliminates the possibility of a person holding multiple PAN cards.
- The Income Tax Department can precisely detect any sort of tax evasion by linking Aadhaar with PAN.
- The process of submitting income tax returns has become significantly simplified because the individual is not required to present any documentation that he or she has submitted their taxes.
- By linking your Aadhaar and PAN, you can avoid having your PAN deleted.
- The linkage of PAN and Aadhaar will allow for the storage of a summary of one’s taxes in Aadhaar for future reference.
How can I link my Aadhaar number to my PAN number?
Linking can be done in a variety of ways:
- You can utilise an e-filing website to perform the same thing. To learn more, go here.
- Sending a text message to 567678 or 56161
a. Create a message in the format:
UIDPAN <12 digit Aadhaar> <10 digit PAN>
b. From your registered mobile phone, send a text message to 567678 or 56161.
c. If the information provided is correct, the Aadhaar will be successfully connected to the PAN.
- At a PAN service centre, one can manually fill out a form.
How can I see if my PAN and Aadhaar numbers are linked?
You can verify your current PAN–Aadhaar linkage status in a variety of ways.
- On the official website of the Internal Revenue Service. To learn more, go here.
- Via text message
a. Write a message in the following format:
UIDPAN <space> <12 digit Aadhaar> <space> <10 digit PAN>
b. From your registered mobile number, send this message to 567678 or 56161.
c. You will receive a response with the current linking status.
In case you have any inability in linking PAN with Aadhaar then get in touch with the best tax consultant in Chennai who can help you with the process.