Implications of the Aadhaar-PAN Link

Linking Aadhaar card to one’s Permanent Account Number (PAN) card is no longer a choice. As per a Supreme Court judgement passed on 9th June 2017, anyone who holds an Aadhaar card has to link it to his/her PAN and mention the same in the tax returns. The government has set July 1, 2017 as the deadline for linking Aadhaar card with the PAN card. However, those who do not have Aadhaar can e-file tax returns without the same for FY 2016-17.

Issued by the Income Tax Department, PAN is a 10-digit alphanumeric number used for keeping a track of financial transactions including big spends whereas Aadhaar is a 12-digit numeric code issued by the Unique Identification Authority of India (UIDAI) basis the demographics and biometric information. Aadhaar works as an identity and address proof thereby creating a unique and universal identity for every Indian citizen. This negates the need for various documents to avail of certain products and services. Aadhaar serves as the best identity proof because of its link to an individual’s biometrics.

The I-T department has made Aadhaar compulsory for filing income tax returns (ITRs) and for obtaining a new permanent account number (PAN) from July 1, 2017. The government, on the other hand, has mandated the linking of bank accounts with PAN by June 30, 2017.

The Central Board of Direct Taxes (CBDT) released a statement last week stating, “Everyone who has been allotted permanent account number as on 1st July, 2017, and who has Aadhaar number or is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to income tax authorities for the purpose of linking PAN with Aadhaar.”

Here’s how an Aadhaar can be linked with the PAN card:

• Register on the e-Filing portal of the Income Tax Department incometaxindiaefiling.gov.in
• Enter the login details, date of birth and password.
• Once logged in, visit your profile settings where you can find an option of linking Aadhaar card with PAN card. Click on the same and a pop –up window appears prompting you to link your Aadhaar card with the PAN card.
• Check if your personal details match with those on the Aadhaar Card.
• Enter the Aadhaar card number and click on “Link now” button.

If the details on both cards match, your card gets linked instantly whereas in case of mismatch in details, the individual is advised to submit a PAN correction form at designated NSDL centres with necessary evidences. Correspondingly, if Aadhaar card details need to be rectified, one should visit the designated centres with necessary evidences.

Moreover, Aadhaar and PAN can be linked through SMS as well. The Income Tax Department has urged taxpayers to link their Aadhaar with their PAN by sending an SMS to either 567678 or 56161.

SIGNIFICANCE OF AADHAAR – PAN LINK

Mr. Sanjeev Gadhok, CFO, MyMoneyMantra says, “The government’s intention is to cover different identification numbers into one for better compliance. Linking of Aadhaar with PAN will help in identifying whether multiple PAN numbers are maintained by the same assesse.”

According to Mr. Gadhok, “Linking will also help government to give benefits to deserving people of the country. Eventually, there will be one identification number for better compliance.”