As we approach the end of the financial year, it’s important to note that there are only 32 days left to link your PAN card and Aadhaar number. The deadline for linking the two was extended to March 31, 2022, and if you haven’t linked your PAN card and Aadhaar number yet, it’s time to do so. In this article, we’ll explain why it’s essential to link your PAN card and Aadhaar number and provide you with a step-by-step guide on how to link the two.

Why is it Important to Link Your PAN Card and Aadhaar Number?

The government has made it mandatory to link PAN cards and Aadhaar numbers for many reasons. One of the primary reasons is to reduce tax evasion and duplicate PAN cards. By linking a PAN card and an Aadhaar number, it’s easier for the government to track and identify individuals who have more than one PAN card. Additionally, linking your PAN card and Aadhaar number can help simplify your tax filing process. Once your PAN card and Aadhaar number are linked, you won’t have to submit a physical copy of your PAN card while filing your income tax returns.

Step-by-Step Guide to Link Your PAN Card and Aadhaar Number

Linking your PAN card and Aadhaar number is a straightforward process. Follow these steps to link your PAN card and Aadhaar number:

Step 1: Visit the Income Tax Department’s e-filing website and click on the “Link Aadhaar” option under the “Quick Links” section.

Step 2: Enter your PAN number, and Aadhaar number, enter your mobile number and type OTP.

Step 3: Pay 1000

Step 4: Click on the “Link Aadhaar”

What are the consequences of not linking PAN and Aadhaar?

The Government has emphasized the significance of linking PAN and Aadhaar by imposing penalties for non-compliance. Here are some of the consequences of not linking PAN and Aadhaar:

• Inability to file Income Tax Returns: If PAN and Aadhaar are not linked, the individual will be unable to file their income tax returns, as the ITR filing process necessitates the mention of the PAN card number.
• Imposition of a fine: If PAN and Aadhaar are not linked, the taxpayer may be subject to a fine of up to Rs. 1,000 under Section 272B of the Income Tax Act.
• Disallowance of deductions: If PAN and Aadhaar are not linked, the individual may be unable to claim any tax deductions, such as Section 80C, 80D, etc., when filing their income tax returns.
• Invalidation of PAN: If PAN and Aadhaar are not linked, the PAN card may be invalidated or deemed inoperative, making it impossible to use for any financial transactions.
• Rejection of high-value transactions: PAN and Aadhaar linkage is essential for high-value transactions such as the purchase of a property, opening of a bank account, or investments exceeding Rs. 50,000, among others. If PAN and Aadhaar are not linked, the transactions will be rejected.

FAQs

Q1. Is it mandatory to link the PAN card and Aadhaar number? A1. Yes, it is mandatory to link your PAN card and Aadhaar number.

Q2. What is the deadline for linking a PAN card and Aadhaar number? A2. The deadline for linking the PAN card and Aadhaar numbers is March 31, 2022.

Q3. What is the penalty for not linking a PAN card and Aadhaar number? A3. If you don’t link your PAN card and Aadhaar number by the deadline, your PAN card will become invalid, and you will have to pay a penalty of up to Rs. 1,000.

Q4. Can I link my PAN card and Aadhaar number offline? A4. No, you can only link your PAN card and Aadhaar number online.

Q5. Can I link multiple PAN cards with one Aadhaar number? A5. No, you can link only one PAN card with one Aadhaar number.