LINKING OF PAN AND AADHAR NUMBER
What is PAN?
PAN stands for Permanent Account Number. It is a unique 10-digit alphanumeric identification number issued by the Income Tax Department of India to individuals and entities for the purpose of tracking financial transactions. PAN is mandatory for certain financial transactions, such as opening a bank account, filing income tax returns, and making certain types of financial transactions. It serves as proof of identity for Indian citizens.
What is Aaadhar Number?
Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI) to every individual resident of India. It serves as proof of identity and address, regardless of the person’s age, gender, religion, or economic status.
The Aadhaar number is linked to the individual’s biometric and demographic data, including fingerprints and iris scans, as well as demographic information such as name, address, date of birth, and gender. The Aadhaar number is used for various services and benefits, such as opening a bank account, obtaining a SIM card, receiving government subsidies, and filing taxes.
LINKING OF PAN AND AADHAR NUMBER:
As per CBDT circular F. No. 370142/14/22-TPL dated 30th March 2022, every person who has been allotted a PAN as on 1st July 2017 and is eligible to obtain an Aadhaar number is required to link PAN with Aadhaar on or before 31st March 2022.
Linking of PAN (Permanent Account Number) and Aadhaar is a process where an individual’s PAN is linked to their Aadhaar number. This linking is mandatory as per the Indian government’s rule, it is done to ensure that the individual’s PAN and Aadhaar are linked to their biometric and demographic data so that their identity can be verified easily. The linking of PAN and Aadhaar can be done in various ways, such as:
- Online: Through the Income Tax Department’s e-filing website
- SMS: By sending an SMS to a designated number
- Offline: By visiting a PAN center or a Permanent Enrolment Centre
Once the PAN and Aadhaar are linked, the individual’s biometric and demographic data is verified to ensure that the PAN belongs to the Aadhaar holder. This linking helps the government to curb the use of multiple PANs by a single individual, which is used for tax evasion and other financial frauds.
In order to mitigate the inconvenience to taxpayers, an additional window of opportunity has been provided by the Income tax department to link your PAN with your Aadhaar by 31 Mar 2023.
However, Taxpayers who failed to do so are liable to pay a fee of Rs. 500/- till 30th June, 2022, and thereafter a fee of Rs. 1000/- will be applicable before submission of the PAN-AADHAAR linkage request.