Linking PAN with Aadhaar
Background
This is to inform you on the regulation released by Ministry of Finance, Central Board of Direct Taxes (CBDT) dated February 13, 2020 which states an amendment in the income tax rules, 1962. The amendment defines the manner of making Permanent Account Number (PAN) inoperative, if an individual fails to furnish, communicate, or quote the Aadhaar number to the Income- tax authorities. This means, if customer fails to link Aadhaar with PAN by June 30, 2023, PAN would be considered as inoperative even if available in records.
Eligible customers
- Resident Individuals
- Sole Proprietorship (where an individual is a proprietor)
Click here to link now (Kindly ignore if already linked)
https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar
Benefits of linking PAN with Aadhaar
- TDS will be applicable at a lower rate
(Based on Amendment to Income Tax Rules U/s 139AA, dated February 13, 2020 by CBDT)
Q1. What is an inoperative PAN?
If a PAN is not linked with an Aadhaar, then status of such PAN is considered inoperative by Income Tax department.
Q2. How does one check if his/her PAN is linked with an Aadhar and if not linked then, how to link PAN with Aadhaar?
For both the requirements, either click on the below hyperlink or paste the URL of income-tax site in your browser, key-in the required details and submit it.
https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar
User manual available at https://www.incometax.gov.in/iec/foportal/help/how-to-link-aadhaar
Q3. What are the pre-requisites to link PAN with Aadhaar number?
Q4. How do I link the PAN with Aadhaar in case of name, date of birth or gender mismatch in PAN?
Please approach PAN or Aadhaar issuing authority for addressing this issue.
Q5. Where can I check the status, whether my PAN has been linked with Aadhaar?
Click on the below hyperlink or paste the URL in your browser. Enter your correct PAN and Aadhaar number and submit. It will display a success or a failure comment.
https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar
User manual available at https://www.incometax.gov.in/iec/foportal/help/how-to-link-aadhaar
Q3. What are the pre-requisites to link PAN with Aadhaar number?
- Have a valid PAN and Aadhaar
- The name, date of birth and the gender as per PAN needs to match against these details on your Aadhaar
- Ensure that the Aadhaar number and the name entered by you is the same as printed on your Aadhaar card
Q4. How do I link the PAN with Aadhaar in case of name, date of birth or gender mismatch in PAN?
Please approach PAN or Aadhaar issuing authority for addressing this issue.
Q5. Where can I check the status, whether my PAN has been linked with Aadhaar?
Click on the below hyperlink or paste the URL in your browser. Enter your correct PAN and Aadhaar number and submit. It will display a success or a failure comment.
https://eportal.incometax.gov.in/iec/foservices/#/pre-login/link-aadhaar-status
Q6. What is the last date to link PAN with Aadhaar number?
Currently, last date to update PAN with Aadhaar to ensure PAN remains operative without any prescribed activities getting impacted is June 30, 2023. However, this can be done after the date keeping in mind that all activities in the circular would be impacted and as per finance act, 2021, customer may also be liable to pay late fees up to Rs.1,000/- for any linking done from July 1, 2023, onwards.
Q6. What is the last date to link PAN with Aadhaar number?
Currently, last date to update PAN with Aadhaar to ensure PAN remains operative without any prescribed activities getting impacted is June 30, 2023. However, this can be done after the date keeping in mind that all activities in the circular would be impacted and as per finance act, 2021, customer may also be liable to pay late fees up to Rs.1,000/- for any linking done from July 1, 2023, onwards.
Q7. What are the other modes through which PAN can be linked with Aadhaar?
User manual is available at https://www.incometax.gov.in/iec/foportal/help/how-to-link-aadhaar
PAN-Aadhaar linking through SMS has been discontinued as of now.
Q8. What is the TAT for linking of PAN with Aadhaar?
As per Income Tax website, PAN will be linked with Aadhaar within 5 days of submitting the request.
Q9. Will the PAN be considered as invalid/inoperative if not linked with Aadhaar number?
Yes, PAN will be treated as inoperative by the Income Tax department.
Q10. Is any documentary proof required to link the PAN with Aadhaar?
No.
Q11. If an individual is not having an Aadhaar number, will his/her PAN be considered as inoperative?
Person who is allotted PAN and eligible to obtain Aadhar number, is required to link this Aadhar with PAN before June 30, 2023, so if person is eligible to obtain Aadhaar number, but is not having Aadhaar number, then his/her PAN will be considered inoperative, since it is not linked with Aadhaar.
Q12. Can the bank link PAN with Aadhaar for the customer?
No, as off now customer needs to do the linking.
Q13. Do NRI’s have to link their PAN with Aadhaar number?
No. As displayed on Income Tax portal, NRI’s are not required to link PAN with Aadhaar.
Q14. Who falls under the purview of this guideline?
- Resident Individuals
- Sole Proprietorship (where an individual is a proprietor)
Q15. If the customers PAN with the bank turns inoperative, will such PAN be considered as a valid PAN?
It will be considered as PAN not quoted/furnished for this customer; regardless PAN is updated with the bank.
Q16. What is the impact for customers whose PAN is inoperative?
Accounts where PAN is inoperative, would be treated as PAN not available. TDS will be deducted at 20%. Restriction on certain banking services and transactions. Refer Q.20 & Q.21
Q17. Why am I not able to link my Aadhaar with PAN, though my name as per Aadhaar and PAN is same?
Please see pre-requisites mentioned in Q.3 and follow the same. Despite that if the issue persists, please approach PAN or Aadhaar issuing authority for further process.
Q18. How can I link my Aadhaar number with PAN if there is minor mismatch in my name appearing in Aadhaar and PAN?
You will not be allowed to link. Please approach PAN or Aadhaar issuing authority for further process.
Q19. If PAN is inoperative, is there an impact on third party products?
No.
Q20. Which are the general banking transactions restricted for customers having inoperative PAN?
Below is the sample list of banking transactions where operative PAN is required to be quoted:
- Submission of Form 15G/H
Note: Below banking transactions are not restricted but will attract higher TDS if PAN is inoperative.
- Cash withdrawal exceeding INR One Crore (INR 1,00,00,000).
- LRS, Trade FX and Debit Card international transactions.
Q21. Which processes will be impacted for customers having inoperative PAN?
Below processes will be impacted if customer submits inoperative PAN. Only operative PAN will be accepted for below processes.
- Enabling International transactions for Debit Cards
Q22. Which is the TDS related activity being impacted if PAN is found to be inoperative?
15 G/H form submission, cash withdrawal exceeding INR One Crore (INR 1,00,00,000). Higher TDS rates will be applicable.
Q23. Who is exempt from PAN-Aadhaar linking?
Aadhaar-PAN linkage requirement does not apply to below list of individuals:
- Residents of the States of Assam, Jammu & Kashmir, and Meghalaya.
- A non-resident as per the Income-tax Act, 1961.
- Person of age 80 years or more, at any time during the previous year.
- Not a citizen of India.
