The Central Board of Direct Taxes (CBDT) has been pushing for the linking of Aadhaar with PAN for several years now. The updated deadline to link PAN with Aadhaar is 30th June 2023.

Please do so before the deadline to avoid your PAN card being inoperative from 1st April 2023. This means that you will not be able to do anything that requires your PAN card details. Therefore, it is crucial to link your PAN with your Aadhaar before the deadline.

But why is the government so adamant about linking PAN with Aadhaar? The primary reason behind this move is to strengthen the Know Your Customer (KYC) process. KYC is a process that banks and other financial institutions use to verify the identity of their customers. By linking PAN with Aadhaar, the government can ensure no duplication of PANs. It also helps in tracking the financial transactions of individuals, thus curbing tax evasion.

If you fail to link your PAN with your Aadhaar before the deadline, you may face several limitations. For example, you will not be able to file your ITR. This means you will not be able to claim tax deductions, file for refunds or carry forward losses. You will also be unable to deposit or make a fixed deposit of more than INR 50,000 in your bank. Additionally, you will not be able to get a new debit or credit card or invest in mutual funds or purchase forex of more than INR 50,000. Furthermore, you will be subject to higher TDS/TCS on your invoices, resulting in a higher tax liability.

How to check if your PAN is linked to Aadhaar card or not?

1. Visit the official Income Tax Dept site - (https://www.incometax.gov.in/iec/foportal/)

2. Quick Links > Link Aadhaar Status

3. Enter the PAN and Aadhaar number and click "View Link Aadhaar Status"

4. Click "Link Aadhaar" if it's not yet linked

5. If the cards are linked, then you don’t have to do anything

How to link your PAN with Aadhaar card?

1. Visit - https://www.incometax.gov.in/iec/foportal/

2. Quick Links > Link Aadhaar

3. Enter the ‘PAN’ and ‘Aadhaar Number’ and Validate

4. A pop-up message stating, “Your payment details are verified”

5. Click the ‘Continue’ button to submit the linking request. 

6. Enter the required details and click the ‘Link Aadhaar’ button

7. Enter the OTP received on the mobile number

8. The request is successful 

You can also visit a PAN card centre to link the PAN and Aadhaar.

Exemptions - 

1. Individuals residing in the states of Jammu and Kashmir, Assam and Meghalaya. 
2. A non-resident taxable person as per the Income-tax Act, 1961. 
3. People aged more than 80 years (Super Senior Citizens). 
4. Persons who are not citizens of India.

FAQs - 

1. What is the Pan Aadhar Link in India?

Answer: Pan Aadhar Link in India is a mandatory process that requires linking your Aadhaar card with your PAN (Permanent Account Number) card. The Indian government introduced this process to curb tax evasion and ensure transparency in financial transactions.

1. How can I link my Aadhar card with my PAN card?

Answer: To link your Aadhaar card with your PAN card, visit the income tax department's e-filing portal or the official UIDAI website. You will need to enter your PAN and Aadhaar card details, and the website will validate and link the two cards.

1. Is it mandatory to link Aadhaar card with PAN card in India?

Answer: Yes, it is mandatory to link your Aadhaar card with your PAN card in India. Failure to do so may result in the invalidation of your PAN card, and you may face penalties or fines for non-compliance.

1. What are the benefits of linking Aadhaar card with PAN card?

Answer: Linking your Aadhaar card with your PAN card has several benefits, including the filing of income tax returns, getting a new credit or debit card, reduction in tax evasion and identity theft, and simplification of financial transactions.

1. Can I link multiple Aadhaar cards with one PAN card?

Answer: No, it is not possible to link multiple Aadhaar cards with one PAN card. Each PAN card can only be linked with one Aadhaar card. However, if you have multiple PAN cards, you can link them with the same Aadhaar card.