'Link PAN with Aadhaar by May 31 to Avoid Higher TDS': Income Tax Dept Issues Reminder

The Income Tax Department on Tuesday issued a reminder, urging taxpayers to link their Permanent Account Number (PAN) with Aadhaar by May 31, 2024. The I-T department, in a post on X, said that those who fail to meet the deadline will face a higher rate of tax deduction at source (TDS).

“Kind attention taxpayers, please link your PAN with Aadhaar before May 31st, 2024… Linking your PAN with your Aadhaar by May 31 ensures you don’t face higher tax deduction/ tax collection under Section 206AA and 206CC of the Income Tax Act, 1961, due to an inoperative PAN for the transactions entered into before March 31, 2024,” the income tax department said in a post on X on May 28, 2024.

This is not the first time the department has asked citizens for PAN-Aadhaar linking. In a circular issued on April 23, 2024 (CBDT Circular No. 6/2024), the Central Board of Direct Taxes (CBDT) outlined the regulations and potential consequences of not linking PAN with Aadhaar.

What is PAN-Aadhaar Linking?

PAN (Permanent Account Number) is a ten-digit alphanumeric number issued by the Income Tax Department to taxpayers in India. Aadhaar is a unique twelve-digit identification number issued to Indian residents by the Unique Identification Authority of India (UIDAI). Linking PAN with Aadhaar helps streamline tax filing, eliminate duplicate PAN cards, and improve transparency in financial transactions.

Why is PAN-Aadhaar Linking Important?

The Income Tax Department has made PAN-Aadhaar linking mandatory for taxpayers. Those who fail to link their PAN with Aadhaar by the deadline will face a penalty. More importantly, their PAN card will become inoperative, which can cause significant inconvenience. An inoperative PAN card can lead to:

• Difficulty filing income tax returns
• Issues processing tax refunds
• Higher TDS deduction on income such as salary, interest on investments, etc.

How to Link PAN with Aadhaar

There are two ways to link PAN with Aadhaar:

Online: These are the steps to link PAN with Aadhaar online:

Step 1: Go to incometaxindiaefiling.gov.in, the e-filing portal of the I-T department.

Step 2: Click on the ‘Link Aadhaar’ option under the ‘Quick Links’ section of the webpage.

Step 3: This will redirect you to a new page where the PAN number, Aadhaar number and other required details like your name need to be entered.

Linking Via SMS

Step 1: Dial 567678 or 56161 on a mobile device to send an SMS. The format should be UIDPAN (10-digit PAN card number), 12-digit Aadhaar card number, and space.

Step 2: Following that, an SMS will inform you of the PAN-Aadhaar link status. The Aadhaar and PAN will only be linked if the taxpayer’s date of birth matches both documents.

Offline: Taxpayers can also visit a PAN Service Provider or Aadhaar enrollment centre to facilitate the linking process.

How to Check if your PAN and Aadhaar Card is Already Linked?

i) Go to the official site of the income tax department — www.incometax.gov.in.

ii) Click on the Quick Links option. There, you will find an option to check ‘Link Aadhaar Status’. You need to click on that.

iii) After this, you will see a new screen on your computer or mobile. Here, you have to enter your PAN and Aadhaar numbers.

iv) Once you fill in the details, click on ‘View Link Aadhaar Status’.

v) The status of your Aadhaar-PAN will be displayed on the page. Example: Your PAN (PAN Aadhaar) is linked to Aadhaar number (Aadhaar Number) if they are linked.