How to link PAN with Aadhaar? Here is a step by step guide

Under the current laws, it is mandatory to link your PAN with your Aadhaar number. Further, it is mandatory to quote your Aadhaar number at the time of filing income tax return (ITR), applying for new PAN and also to avail monetary benefits from the government such as pension, scholarship, LPG subsidy etc

The last date to link PAN with Aadhaar without having to pay a fee, was March 31, 2022. If you link your PAN with Aadhaar on or after April 1, 2022, then it will cost you. If the linking of the same is done on or before June 30, 2022, then you will have to pay a fee of Rs 500. If the linking of both the documents is done on or after July 1, 2022, then a fee of Rs 1000 will be payable.

Earlier, there was no provision in the income tax laws for charging fee for linking of PAN with Aadhaar. However, last year in Budget 2021 Section 234H was introduced under the Income-tax Act,1961, to charge fee (up to Rs 1,000) on linking of PAN with Aadhaar from a specified date - which has been notified as April 1, 2022.

Do note that as per the latest income tax circular, if you do not link your PAN with Aadhaar, then your PAN will remain operative till June 30, 2023 only. However, from July 1, 2023 onwards your PAN will become inoperative if not linked with Aadhaar.

The government through a notification dated February 13, 2020, has clarified what will happen once the PAN becomes inoperative. According to that notification, if a person links his/her PAN with Aadhaar after the latest deadline i.e. March 31, 2023, then the PAN will become operative only from the date of intimation of Aadhaar number. However, linking of the two from April 1, 2022 will cost you money as mentioned above.

Once your PAN becomes inoperative, then you will not be able to conduct financial transactions wherever quoting of PAN is mandatory. These include opening of bank account, filing income tax return, claiming income tax refund, investing in stocks, mutual funds etc.

Also from April 1, 2019, it has become mandatory to quote and link Aadhaar number while filing income tax returns unless specifically exempted. According to chartered accountants, an individual cannot file his/her ITR without linking the two first.

Here is how you can link your PAN with Aadhaar.

• If you are already a registered user at income tax e-filing website

If you are already filing income tax returns, chances are that your PAN is already linked with Aadhaar if you have mentioned it previously while filing ITR in the previous assessment years. It is done by the income tax department in case details of both are already available with it.

You can check if your Aadhaar is already linked to your PAN by visiting the income tax e-filing website www.incometaxindiaefiling.gov.in

Login to the website by entering PAN (User ID) and password. Once you are logged in and your account opens, click on 'Profile Settings' by clicking the arrow next to your name. The profile will show your Aadhaar number partially as linked.

• For non-registered users

If you don't want to register yourself at the e-filing website, there is another way using which you can link your PAN and Aadhaar. A hyperlink has been provided at the homepage of the new income tax portal: www.incometax.gov.in
Just click on 'Link Aadhaar' on the e-filing website. A new form will appear where you are required to enter details - PAN, Aadhaar number, Name as per Aadhaar and mobile number.
If your aadhaar card has only year of birth, then you must also tick the option: 'I have only year of birth in Aadhaar card'. You must also agree to validate my Aadhaar details. Click on 'Link Aadhaar'.

Once submitted successfully, a message will be displayed on your screen showing your PAN is successfully linked to Aadhaar.

Other methods
a) By sending an SMS to PAN service providers
If you are unable to link your PAN and Aadhaar using the e-filing website of the department then there are other ways for linking PAN and Aadhaar.

Central Board of Direct Taxes (CBDT) in its notification dated June 29, 2017 has provided other methods to link PAN and Aadhaar other than the methods mentioned above.

You can link your PAN and Aadhaar by sending a simple SMS. You can send an SMS to either of the PAN service providers namely NSDL e-Governance Infrastructure Limited or UTI Infrastructure Technology and Services Limited (UTIITL).

You can simply send sms in a specific format using a keyword to either 567678 or 56161.

The format is: UIDPAN<12 digit Aadhaar><10 digit PAN>

For example, if your Aadhaar number is 111122223333 and PAN is AAAPA9999Q. Then you are required to send sms to 567678 or 56161 as
UIDPAN 111122223333 AAAPA9999Q

NSDL and UTI won't charge you for this. However, SMS charges as levied by the mobile operator will be applicable.

b) Manual linking by filing up a form (Annexure-I)

As per the above-mentioned notification, CBDT has provided for a manual method as well to ease the problems of taxpayers in case the person is unable to sort out the problem of mismatch in the data of PAN and Aadhaar through other methods.

You can visit a service centre of PAN service provider, NSDL or UTIITSL. You will be required to fill in the form 'Annexure-I' along with the supporting documents i.e. copy of PAN card and Aadhaar card.

Unlike online services, this service is not free of charge. An individual is required to pay a prescribed fee to them. The fee charged depends on whether while linking, correction is made in the PAN or Aadhaar details.

For any correction in the PAN details, the fee charged is Rs 110. On the other hand, for correcting Aadhaar details, the prescribed fee is Rs 50.

Biometric authentication is compulsory in case there is a major mismatch in data of PAN and Aadhaar.

Points to Note:
1. If using online methods, an Aadhaar OTP will be generated in case your name does not match that on your PAN card whereas your date of birth and gender matches. The OTP will be sent to the mobile number registered/linked to the Aadhaar number entered online. You will have to enter that OTP online to continue and complete the linking process.

2. It is advisable that in case there is a mismatch in the data of PAN and Aadhaar you get it corrected before trying to link the two numbers.