.jpeg)
Aadhaar, the 12-digit unique identification number, has become an integral part of our lives. From opening a bank account to filing income tax returns, Aadhaar is used for a wide range of services. Similarly, Permanent Account Number (PAN) is another crucial document that is mandatory for filing taxes, making investments, and conducting financial transactions. The Government of India has made it mandatory for all individuals to link their PAN with Aadhaar. In this blog, we will discuss why linking PAN with Aadhaar is important, the benefits of doing so, and the steps involved in the process.
Why Linking PAN with Aadhaar is Important?
The primary reason for linking PAN with Aadhaar is to eliminate duplicate and fake PAN cards, which are often used for money laundering and other fraudulent activities. By linking Aadhaar with PAN, the government can easily track individuals' financial transactions and ensure that they are paying their taxes. The government has also made it mandatory for individuals to link their PAN with Aadhaar to file their income tax returns. If you fail to link your PAN with Aadhaar, your PAN card may become invalid, and you may be liable for penalties and fines.
Benefits of Linking PAN with Aadhaar:
Apart from fulfilling the government's mandate, there are several benefits of linking PAN with Aadhaar. Some of these are:
Ease of Filing Taxes: If you link your PAN with Aadhaar, you can easily file your income tax returns online. The process is simple, and you can do it from the comfort of your home.
Avoid Penalties: If you do not link your PAN with Aadhaar, you may have to pay penalties and fines. By linking your PAN with Aadhaar, you can avoid such penalties.
Faster Processing of Refunds: If your PAN is linked with Aadhaar, the processing of your income tax refunds is faster. You can receive your refund directly in your bank account.
KYC Verification: By linking your PAN with Aadhaar, you can complete your KYC verification for various financial services like opening a bank account, buying insurance, etc.
Steps to Link PAN with Aadhaar:
Now that you know the importance and benefits of linking PAN with Aadhaar, let's look at the steps involved in the process.
Step 1: Visit the Income Tax e-Filing Portal: The first step is to visit the income tax e-filing portal at https://www.incometaxindiaefiling.gov.in/.
Step 2: Log in to your Account: If you are an existing user, you can log in to your account using your PAN, password, and date of birth. If you are a new user, you can register on the portal using your PAN, name, and date of birth.
Step 3: Click on Link Aadhaar: Once you are logged in, click on the "Profile Settings" tab, and select "Link Aadhaar" from the drop-down menu.
Step 4: Enter your Aadhaar Details: Enter your 12-digit Aadhaar number, name as per Aadhaar, and the Captcha code. Then click on "Link Aadhaar" button.
Step 5: Verification of Aadhaar Details: After submitting the details, the portal will verify your Aadhaar details with the UIDAI database. If the details match, your PAN will be linked with Aadhaar. You will receive a confirmation message on your registered mobile number and email.
Alternatively, you can also link your PAN with Aadhaar through SMS. To link your PAN with Aadhaar through SMS, follow the steps given below:
Step 1: Send an SMS to 567678 or 56161 in the following format: UID