Aadhar Card: Understanding the Basics & Importance of Linking PAN with Aadhaar
Every citizen of the nation is given a unique identification number known as an Aadhaar card. It is among the most crucial documents to submit for a variety of reasons. Indian citizens must possess an Aadhaar card since it serves as identification documentation. A person may be prohibited from engaging in certain activities if they forget to submit their Aadhaar card or do not carry one.
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Key identity documents for Indian nationals are the Permanent Account Number (PAN) card and the Aadhaar card. The Unique Identification Authority of India (UIDAI) issues the Aadhaar card, while the Income Tax (IT) department issues PAN cards. PANs are special identifying numbers that are given to people and companies for taxation purposes. It is now required by the IT department to link Aadhar and PAN cards.
In this article, we will explain the basics of the Aadhar Card and highlight the importance of linking it with the PAN card.
What is an Aadhar Card?
The Aadhaar card is a 12-digit identity number given and regulated by the Unique Identification Authority of India (UIDAI). This unique number is created by merging a person's address and date of birth with their biometric data, such as fingerprint and iris scans. Here are the reasons why it is important:
The uniqueness of the Aadhaar card number reduces the chances of fraudulent and duplication of identity
It provides access to numerous government-run social programs and initiatives.
Transparency is prompted by Aadhar cards
Eligibility for Aadhar Card
Every Indian has the right to obtain an Aadhaar number by providing identification and demographic information, as per the Aadhaar Act, 2016. According to this statute, in order to be eligible for an Aadhaar card, you must have been a resident of the nation for more than 182 days during the previous 12 months. The eligibility criteria for some unique cases are explained below:
Aadhar Card Eligibility for NRIs: Any adult or minor Non-Resident Indian (NRI) with a current Indian passport may apply for an Aadhaar card by going to an Aadhaar Seva Kendra in India. Nonetheless, the NRI must have spent a minimum of 182 days in India in the year before submitting their Aadhaar card application.
Aadhar Card Eligibility for Minors or Baal Aadhaar: Enrolment in Aadhaar is possible even for younger people and babies. When applying for an Aadhaar card for a child, parents must give confirmation of their identification and address. But when kids become five years old and fifteen years old, respectively, they have to update their biometric information twice. For kids under five, the Baal Aadhaar card will be blue in colour.
Documents Required for Aadhar Card
Proof of Identification (any one): Voter ID, PAN Card, passport, driving licence, ration card, bank account statement, marksheet or school leaving certificate, service photo ID card issued by State or Central Government.
Proof of date of birth (any one): Birth certificate, marksheet, passport, service photo ID card issued by State or Central Government.
Proof of address (any one): Voter ID, passport, ration/PDS card, service photo ID card issued by State or Central Government, bank account statement, marriage certificate, property tax receipt, sale deed or rent agreement, electricity, telephone, mobile or water bill less than 3 months old.
Steps to Enrol for Aadhar Card
Step 1: Go to the UIDAI website to locate an Aadhaar enrolment centre.
Step 2: Provide the information provided on the form.
Step 3: Send in the necessary paperwork.
Step 4: Give your biometric information (iris scan and fingerprint).
Step 5: Obtain the slip acknowledging your enrollment.
Step 6: The registered address will receive an Aadhaar card.
Step 7: Enrolling in Aadhaar is free of cost and entirely voluntary.
Steps to Enrol for Aadhar Card for NRIs
Step 1: Make an appointment. To schedule an online appointment, go to the official website. Otherwise, start your application process by going straight to an enrollment centre.
Step 2: Send in the essential documents. Present your evidence of residence, proof of identity, and any other supporting documentation, such as your present country's stamped visa.
Step 3: Bring the original copies of each of these records at the enrollment location.
Step 4: Provide your biometric information. Your fingerprints, an iris scan, and a photo will all be taken by the representative at this type of enrolment centre.
Step 5: The Aadhar Card will be shipped to your home address in India once the information is gathered and the supporting documentation is checked.
Steps to Enrol for Baal Aadhar Card
Step 1: Locate the closest enrolment centre by visiting the UIDAI website and providing a copy of the child's birth certificate.
Step 2: For authentication, one of the child's parents must disclose their Aadhaar number. The parent's Aadhaar will be connected to Baal Aadhaar.
Step 3: To register for Baal Aadhaar, fill out the application form with all the necessary information and a mobile number.
Step 4: The minor or child will be photographed. No biometric data will be recorded if the child is younger than five years old.
Step 5: Once the aforementioned processes have been fulfilled, obtain the acknowledgement slip.
Step 6: Baal Aadhar will be shipped to the specified location once a verification SMS has been delivered to the mobile number entered in the application form.
How to Update Your Aadhar Card
Aadhaar card details should be updated for two key reasons:
A change of name, age, and address is necessary. mobile number, picture, and birthdate
Modify Aadhaar biometric data
There are two ways to finish the Aadhaar card upgrade process: online portals and Aadhaar enrolment centres. Although the Aadhaar address can be updated using either of the two methods mentioned above, only the enrolment centres have the ability to update biometric data and other demographic information like name, gender, and date of birth.
Steps to Download and Print Aadhar Card
You can download and print the Aadhaar card in PDF format, commonly known as e-Aadhaar, from the Aadhaar website if you successfully enrolled for one but have not yet received the physical copy. This copy is accepted everywhere. Here are the steps to download and print the Aadhar Card:
Step 1: Go to UIDAI's official website.
Step 2: Select "Download Aadhaar" from the "Get Aadhaar" section of "My Aadhaar."
Step 3: Choose "Enrolment ID," type in your 14-digit ID, choose the date and time of enrolment, input the captcha code, and then click "Send OTP."
Step 4: Decide whether to download a masked Aadhaar. After entering the OTP, select "Verify & Download."
Step 5: Your Aadhaar card will download to your computer. You can then print it off or store it on your smartphone so you may access it at any time.
If you intend to use Digilocker, UMANG App, m-Aadhar App, Date of Birth, Virtual ID, or any other method to download your updated Aadhar card. To learn about the steps involved in downloading your Aadhaar, see this link.
How to Check Aadhar Status
You can check the status of your update request or application by going to the official UIDAI website if you have applied for a new Aadhar card or sought to have some details updated in your existing Aadhar card. To check the status of your Aadhaar card online, you must have the following information on hand:
Your Enrolment ID, together with the enrolment date and time
Your Aadhaar-registered mobile number
Once you have these details, checking the status of your Aadhaar card online is simple.
Steps to Verify Your Aadhar Card
Step 1: Go to the UIDAI's official website.
Step 2: Select the "Verify an Aadhaar Number" option under the "Aadhaar services" header after clicking on the "My Aadhaar" tab.
Step 3: Click 'Proceed and Verify Aadhaar' after entering the unique 12-digit Aadhaar number.
Step 4: On your registered mobile phone, enter the one-time password (OTP) that you will be sent.
Step 5: Send in your application.
You can correct any discrepancies in the details by calling the UIDAI toll-free number, 1947.
Importance of Linking PAN with Aadhaar
Using an audit trail to stop fraud: The government has an audit trail when the Aadhar and PAN cards are linked. Almost all transactions now require an Aadhar card. Therefore, their connectivity provides the income tax authorities with a detailed activity trail. A large amount of black money exists in the economy as a result of a lack of an audit trail. Aadhar is significantly more commonly used than PAN cards. This means that more individuals who may have been evading taxes will come within the tax system and the revenue base will grow. This is going to be essential for stopping income leakage. Finding fake PAN cards used in tax evasion would be simpler.
Identifying several PAN cards: An organisation can apply for multiple PAN cards. It can be done by using one for a particular set of financial operations and paying the taxes related to those activities. The other PAN card can be utilised to hide transactions or accounts from the income tax department. Therefore, it saves the business money on taxes. According to the government, it will be very hard for people to have several PAN cards. This has been one of the primary methods of evading taxes by dividing revenue among fictitious PAN cards. Consequently, the system closes yet another significant tax loophole. The linking of PAN and Aadhaar allows the government to identify an entity by their Aadhaar card. Furthermore, they can also obtain records of all financial transactions made using the related PAN card. Multiple PAN cards registered under the same person could be found by the government, which could then take corrective action.
Profit for each individual taxpayer: After Aadhaar and PAN are connected, taxes are due by all. Once tax evasion declines, the government will be able to increase its source of revenue and pass the savings on to you in the form of lower tax rates. The PAN-Aadhar linkage would be very beneficial for tax filing purposes. This is because it would remove the need for more complex procedures like e-signature and sending receipts to the IT department. The task will be completed automatically by Aadhaar e-verification.
Simplicity in filing returns: Previously, taxpayers had to carry their PAN card at all times in order to file returns. However, as of late, they also need to provide Aadhaar information. It will make it simple for taxpayers to submit their applications online. You can verify the validity of returns (ITR-V) by using an OTP that is delivered to the mobile number you registered with Aadhaar.
Organised tax information: Legally speaking, you will not be able to file returns until your PAN card is connected to Aadhaar. It is anticipated to happen early next year. You will have a one-page view of all of your transactions with your I-T login, putting the regulatory element aside. Your PAN card will not be cancelled if you attach your Aadhaar card to it. Additionally, by adding a summary to Aadhaar for future reference, it will be simpler to stay on top of taxes.
Circular for PAN-Aadhar Linking
According to the Section 139AA clause, it is mandatory for all taxpayers to link their PAN to their Aadhar card and submit the details of their Aadhar card with their income tax reports. All PAN holders (except those who qualify for an exemption) were mandated to link their PAN to Aadhaar by June 30, 2023, according to a circular from the IT department. The IT department's initial mandate to link PAN-Aadhaar by March 31, 2022, was then extended to June 30, 2022. However, there was a Rs. 500 fee for anyone who linked their PAN-Aadhaar between July 1, 2022, and June 30, 2022.
The deadline for linking PAN to Aadhaar was subsequently extended by the IT department to June 30, 2023. PAN holders are required to pay a penalty of Rs. 1,000 if they link their PAN to Aadhaar between July 1, 2022, and June 30, 2023. PAN holders who do not link their PAN card to their Aadhaar card will find their PAN inoperative as of July 1, 2023. PAN-Aadhaar linkage is required by the IT department to control and prevent tax evasion.
Consequences of Not Linking PAN with Aadhaar
The PAN-Aadhaar cards do not operate when they are not linked by the deadline. The consequences are stated as follows:
Taxpayers with non-functional PAN cards are unable to submit an ITR or request refunds.
Pending refunds to invalid PAN cards will not be given, nor will the outstanding returns be handled.
A higher rate of application will be made for the TCS/TDS.
TCS/TDS certifications will not be available, and the TCS/TDS credit will not show up in Form 26AS.
The submission of 15G/15H declarations for nil TDS by taxpayers would be prohibited.
Since the PAN card won't work, the following transactions are not possible:
Open an account in a bank.
Debit and credit card issuance.
Purchasing units of mutual funds.
A cash deposit of more than Rs. 50,000 is made in a day at a bank or post office.
Buying a pay order or bank draft for more than Rs. 50,000 in cash on a single day.
A time deposit exceeding Rs. 50,000 or totalling more than Rs. 2,50,000 with banks, Nidhi, Non-Banking Financial Corporations (NBFCs), etc. within a specific financial year.
A bank draft, pay order, or banker's cheque that totals more than Rs. 50,000 for one or more prepaid payment instruments as specified by the Reserve Bank of India (RBI) within a fiscal year.
Any individual who buys or sells items or services for more than Rs. 2,00,000 in a single transaction.
Each bank transaction is worth more than Rs. 10,000.
Exemptions to PAN-Aadhaar Linking
People in the excluded category are exempt from linking PAN to Aadhaar by June 30, 2023. The following categories are exempt:
People who live in the states of Meghalaya, Assam, and Jammu and Kashmir.
A non-resident taxable individual under the 1961 Income Tax Act.
Senior Citizens, or those over the age of 80.
Individuals who are not Indian nationals.
Steps to Link PAN Card with Aadhaar
Step 1: Go to the online portal of the IT Department.
Step 2: From the list of quick links, select the "Link Aadhaar" option.
Step 3: Insert your PAN, Aadhar number, Aadhaar-compliant name, captcha code, and the received OTP.
Step 4: Check the box to indicate that your Aadhaar card's birth year is the only one you have.
Step 5: Click on the "Link Aadhaar" button to send across your request.
Step 6: A pop-up notice verifying that your PAN and Aadhaar have been connected will show up.
Steps to Link an Inactive PAN Card with Aadhaar
The PAN card stops working if it is not connected to the Aadhaar card. You can, however, reactivate your PAN card by first paying the penalty for failing to link it to your Aadhar card and then submitting an application to do so. To pay the fee associated with reactivating an inactive PAN card, take the following steps:
Step 1: Visit the e-Filing Portal for the Income Tax.
Step 2: Under the "Quick Links" area, choose the "e-Pay Tax" option.
Step 3: Click the "Continue" button after entering the mobile number and the "PAN" number in the "PAN/TAN" and "Confirm PAN/TAN" columns.
Step 4: The e-Pay Tax page will be visible after the OTP number has been verified. Select "Continue" from the main menu.
Step 5: Choose the "Income Tax" tab and click on the "Proceed" button.
Step 6: Choose "Other Receipts (500)" under "Type of Payment (Minor Head)" and "Assessment Year"; Additionally, choose "Fee for delay in linking PAN with Aadhar" before clicking "Continue."
Step 7: Using the "Others" option, the required amount will be pre-filled. After selecting "Continue," complete the needed payment.
Steps to Link a PAN Card with Aadhaar After Deadline
When the penalty has been paid for four or five days, taxpayers can link their PAN with Aadhaar by doing the following steps:
Step 1: Access the income tax electronic filing website.
Step 2: Select the "Link Aadhaar" option located under the "Quick Links" category on the homepage's left side.
Step 3: Click on the "Validate" option after entering the "PAN" and "Aadhaar Number."
Step 4: After the penalty payment has been validated, a pop-up notification saying, "Your payment details are verified," will show up. In order to submit the request for a link, click the "Continue" button.
Step 5: Click on the "Link Aadhaar" option after entering the required information.
Step 6: Enter the OTP number which was sent to your mobile device.
Step 7: The PAN-Aadhaar card link request will be submitted successfully.
For PAN-Aadhaar linkage, a taxpayer may also go to a PAN card centre, complete the relevant form, and send it in with photocopies of their PAN and Aadhar cards. After submitting an application for PAN-Aadhaar card linkage, the PAN card will be activated and linked with your Aadhar card within 7 to 30 days. The PAN card can be used for a number of things after it is activated, such as completing your ITR and obtaining TDS refunds.
Steps to Check Status Update for PAN-Aadhaar Link
Step 1: Go to the online portal for reporting income taxes.
Step 2: Click on the "Link Aadhaar” option from the list of quick links.
Step 3: Select "Status" from the menu.
Step 4: Insert your Aadhaar number and PAN.
Step 5: Click on "View Link Aadhaar Status" in the menu.
Step 6: A screen will show the current state of your Aadhaar and PAN linkage.
To check the status of your Aadhaar-PAN card linkage, utilise this direct link. Select 'View Link Aadhaar Status' after entering your PAN and Aadhaar numbers. The status of the connection between your PAN card and Aadhaar will be shown on your screen by the system.
Conclusion
It is now necessary to link your PAN card to your Aadhaar. Because it will allow your income tax returns to be processed, this is an important step. It's also required to link your PAN with Aadhaar if you do banking transactions worth at least Rs. fifty thousand. Simple steps can be taken to link your PAN to your Aadhaar. You can follow this guide to do the needful or consult an expert to help you with the process.
FAQ
Q1. Is it mandatory to link PAN with the Aadhaar card?
Yes. The PAN would stop working if it is not linked to the Aadhaar card by June 30, 2023, as mandated by the IT department.
Q2. Can a PAN Card be linked with an Aadhaar Card number automatically?
Yes, after an automatic linkage, any new PAN application that includes Aadhaar as one of the identity proofs would receive its PAN.
Q3. How many days does it take to link Aadhaar with PAN?
The process of linking your PAN card with your Aadhaar card and making it functional would take approximately 30 days.
Q4. Is it mandatory for super senior citizens to get an Aadhaar Card?
Super senior citizens may not need to have an Aadhaar number in order to link their PAN or file tax returns, but financial services may require it.
Q5. Is PAN-Aadhaar linking free?
No. Taxpayers must pay a penalty of Rs. 1,000 before submitting a request for a PAN-Aadhaar linkage if they link their PAN with their Aadhaar number after July 1, 2022, to June 30, 2023.
Q6. Is it possible to link PAN and Aadhaar cards from mobile?
Yes, you can submit a request for PAN-Aadhaar connection by using your mobile device to access the Income Tax e-filing portal and following the aforementioned instructions before the deadline.
Q7. What is the last date to link Aadhaar with PAN?
June 30, 2023, is the deadline for PAN-Aadhaar connection. After July 1st, 2023, PAN cards that are not connected to Aadhaar will no longer be functional.
Q8. What happens if my PAN-Aadhaar is not linked?
If the PAN and Aadhaar have not yet been connected, your service recipients will be deducting more taxes, and your PAN status will be displayed as Active but inoperative. You can link them by paying a fine of Rs. 1000, so do not panic. Your PAN will become active and operative within 7 to 30 days, and all of your TDS credits will appear on your Form 26AS. Thus, you can correctly claim when you file your taxes.
Q9. What is the penalty for non-linking of PAN with an Aadhaar Card?
Taxpayers can link their PAN-Aadhaar by paying a late penalty of Rs. 1,000 if they fail to do so by the deadline of June 30, 2023. They are unable to apply for the PAN-Aadhaar link on the Income Tax website until they have paid the penalty. However, in order to pay the fine, individuals must guarantee that they have a current PAN and Aadhaar number.
Q10. Is linking an Aadhaar PAN required for Non-Resident Indians (NRI)?
An Aadhaar number is only available to Indian citizens. A resident is someone who has spent at least 182 days in India during the 12 months prior to the application date for Aadhaar. An NRI is not required to link their PAN to Aadhaar and obtain Aadhaar.
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