Link PAN with Aadhaar - Penalty, Payment Process, & More

Linking your PAN and Aadhaar cards are mandatory. But in case you have not yet linked it, and are searching for information on the PAN-Aadhaar link, you’ll find it right here. 

Aadhaar Card PAN Card Link

The Indian government has made it mandatory for everyone to link Aadhaar with PAN card to increase transparency. The deadline to link these two documents is 30 June, 2023. 

There are two steps to this process -

• Pay the penalty of Rs.1000

• Complete PAN-Aadhar link

In this article, we will discuss how to pay the penalty of Rs. 1,000 and the various methods to do this. In case you have already completed your PAN-Aadhar link, click here to check the status of this procedure.

Your search for all processes regarding ‘PAN Aadhaar link online’ ends here!

How to Link PAN Card with Aadhaar Card

You can easily link your PAN and Aadhaar online. You can do it as a registered user, i.e. post-login or as an unregistered user, i.e. without logging in. 

How to Make Payment for PAN Card Aadhaar Card Linking

The first step involved is to make the payment, which can be done in two ways - 

Through the e-Filing Portal

The first way to complete the payment is through the e-filing portal. To follow this, you must have a bank account in any of these banks as on 13/01/2023 - 

• Axis Bank

• Bank of India

• Bank of Maharashtra

• Canara Bank

• Central Bank of India

• City Union Bank

• Federal Bank 

• ICICI Bank

• IDBI Bank

• Indian Bank 

• Indian Overseas Bank 

• IndusInd Bank 

• Jammu & Kashmir Bank 

• Karur Vysya Bank 

• Kotak Mahindra Bank

• Punjab National Bank

• UCO Bank

• Union Bank of India

Then, you can follow these steps below - 

STEP 1: Visit the e-Filing Portal home page and click on ‘Link Aadhaar’ under the ‘Quick Links’ section.

STEP 2: Enter your PAN and Aadhaar Number in the page that opens up.

STEP 3: Select ‘Continue to Pay through e-Pay Tax’ in the pop-up box.

STEP 4: Enter your PAN, then confirm it, and enter your Mobile number to receive an OTP.

STEP 5: Enter the OTP that you receive and once it is verified, you will be redirected to the e-Pay Tax page. Click on ‘Continue’.

STEP 6: Click on ‘Proceed’ on the Income Tax Tile.

STEP 7: Select your Assessment Year as applicable and ‘Type of Payment’ as ‘Other Receipts (500)’.

STEP 8: Then click on ‘Continue’.

STEP 9: The applicable amount will be pre-filled against ‘Others’. Click on ‘Continue’.

The challan will be generated, and on the next screen you will have to select the mode of payment. After this, you will be redirected to your bank’s website where you can make the payment.

Through Protean or NSDL

The second way of completing the payment is through Protean or NSDL. If you don’t have a bank account in the banks listed above, you can follow these steps - 

STEP 1: Visit the e-Filing Portal home page and click on ‘Link Aadhaar’ under the ‘Quick Links’ section.

STEP 2: Enter your PAN and Aadhaar Number in the page that opens up. 

STEP 3: Click on ‘Continue to Pay through e-Pay Tax’ in the pop-up box..

STEP 4: Click on the blue hyperlink given below on the e-Pay tax page. It will redirect you to the Protean (NSDL) Portal.

STEP 5: Once you are on the Protean (NSDL) Portal, click ‘Proceed’ under Challan No./ITNS 280.

STEP 6: Select the ‘Tax applicable’ as 0021 and ‘Type of Payment’ as 500.

STEP 7: Select your Assessment Year as applicable and other mandatory details. Finally, click on ‘Proceed’.

Once the payment is done, you can link your Aadhaar with PAN on the e-Filing Portal.

If you pay through this method, you can complete your PAN-Aadhaar link only after 4 or 5 days of making the payment.

Now that you have made the payment, the next step is to complete the actual link.

Why is it Important to Link PAN With Aadhaar?

The PAN card is an extremely important piece of document in the banking sector, or in any case of big financial investments. The PAN card helps the government track your financial transactions and levy taxes on them when required. 

• You need it to file your ITR, and also helps save a lot of tax

• To open a bank account, or a demat account, you need a PAN card

Similarly, even your Aadhaar card is an essential document in the country. It is your unique identity number, and can act as both your identity and address proof. 

Here are some reasons to link the two documents - 

• First and foremost, it has been made mandatory by the government

• It will be necessary for filing IT returns in the upcoming years

• It will provide an audit trail to the government, which will allow the IT department to track unlawful transactions and stop revenue drainage

• Individuals with multiple PAN cards will not be able to evade taxes as all the cards will be linked to a common Aadhaar card

Thus, the government and the individual taxpayer, both will benefit from this mandatory regulation.

Benefits of Linking your PAN with Aadhaar

Linking your PAN card with your Aadhaar card does come with some advantages -

• It eliminates the possibility of a person having more than one PAN Card.
• The linking of Aadhaar and PAN enables the Income Tax Department to detect any kind of tax fraud.
• The linking of your Aadhaar and PAN prevents the latter from becoming inoperative.
• It will also help in linking tax summaries to the Aadhaar for future reference.

How to Link PAN and Aadhaar Manually?

Following are the steps to link your PAN and Aadhaar cards manually.

• You need to try and contact a PAN service provider(UTIITSL or NSDL).
• You can collect the 'Annexure-I' form and fill in your credentials correctly. 
• Then you need to submit the form to the authorities, which they will process further.
• Make sure to double-check your details. Otherwise, a fee of INR 110 is charged for any sort of correction of your PAN details.  

What happens if I fail to Link my Aadhaar and PAN cards?

If you are unable or ignorant about linking your PAN and Aadhaar card, you will not be able to file for IT returns and TDS files from March 2023 onwards.

The Income Tax department will deactivate your PAN card; thus, any transactions or earnings you have will be deemed illegal. Besides, you will be unable to make genuine transactions above INR 50,000.

Even if your income is below the taxable limit as the government prescribes, you must link your Aadhaar with your PAN card. Or else your PAN card will be deactivated.

Steps To Check PAN Aadhaar Status After Linking Procedure

The ways to verify the status of your PAN-Aadhaar status before logging in are listed below:

• Step 1: Visit the Income Tax Department's website 
• Step 2: Select Link Aadhaar Status' from the 'Quick Links' menu.
• Step 3: Click on 'View Link Aadhaar Status' after entering your PAN and Aadhaar number. On this website, you can monitor the status of your PAN-Aadhaar connection.

You may also use the SMS service to check the progress of the Aadhaar-PAN linkage. You must send an SMS to 567678 or 56161 in the following format:

UIDPAN < 12-digit Aadhaar number> < 10-digit Permanent Account Number>

If your Aadhaar has been successfully connected to your PAN, the message 'Aadhaar (Aadhaar number) is already associated with PAN..in ITD database' will appear. Thank you for making use of our services.'

Some Common Reasons for failure to Link Your PAN to Aadhaar card

While linking your PAN card to your Aadhaar, you might receive some errors. This can stem from a few reasons, which can be listed down below.

• Your detailed credentials can be different for your Aadhaar and PAN cards. 
• The Aadhaar number you provided could be wrong or unavailable in the database. 

Such problems can lead to great inconveniences and wastage of time. Hence we should be equipped with how to tackle them effectively.

How To Rectify Your PAN Card Credentials?

If your Aadhaar card and PAN card details do not match, you can change either of them to match your original credentials. You need to follow these simple steps to rectify your PAN card details.

• Please visit the official NSDL website and select the section 'Application Type.'
• You need to click on the 'Changes or Correction to your PAN Data' menu in the options provided.
• Ensure you enter your details correctly once you select the 'Individual' option. 
• This needs to be followed by entering the Captcha and submitting the application.
• The updated PAN will be sent to the address provided in the form.
  

How To Rectify Your Aadhaar Credentials?

Here are the steps that you can follow to rectify your Aadhaar credentials. Please note that this process is offline.

• You must visit an official Aadhaar enrollment center with all the required documents.
• There they will provide you with an Aadhaar enrollment form which you need to fill with accurate details.
• Following this, you need to submit your form along with the necessary documents to the concerned authorities.
• They will provide you with an acknowledgment slip that will contain the updated request number. You can use this number to check the status of your Aadhaar update request.

Do I have to pay any registration fee to link PAN and Aadhaar Card?

Yes, as of now, you have to pay a fee of INR 500 only if the linking is done by 30th June 2022. After that, the charges will be increased to INR 1000. Therefore, you must get the linking done at the earliest.

The Aadhaar number is an identification number issued to every citizen of India by the Unique Identification Authority of India (UIDAI). It serves as proof of identity and address and can be used for registration with various government agencies like banks, financial institutions, health care providers, etc.

The Permanent Account Number, or PAN, is an identification number issued by the Income Tax Department of India. The 10-digit number is unique to every individual and is one of the most important documents to set up a bank account, buy shares or invest in mutual funds, etc.

Under the current laws, it is mandatory for every Indian citizen to link their PAN cards and Aadhaar cards. In failing to do so, the PAN card will become inoperative post April 1, 2023.  If your PAN becomes invalid, you will be unable to conduct financial transactions where the PAN is required. These include opening a bank account, filing an income tax return, claiming a tax refund, and investing in stocks and mutual funds, among other things.