It is mandatory to link Aadhar-PAN. The government has been behind this process for a long time and we see a lot of effort in building this campaign. So we thought to make you aware of the need, the process of linking addhar pan. We will also provide the 5 ways to Link Aadhaar & PAN & the necessary links to update your PAN Aadhar linkage.

Why link Aadhar-PAN?

The simple reason is the government wants to complete the database. Many schemes are rolled using Aadhar. PAN is your Tax Identification number. The government wants to keep a check on your eligibility of certain scheme which may not be suitable for you. It will save money for the government which can be allocated to something which may benefit you.

Last Date to link Aadhar-PAN

The last date is 30 June 2021.

Update: The last date has been extended to 30 Sept 2021, due to Covid 19 Issues.

What if you do not link Aadhar-PAN?

Income Tax Act regulation shows that the government may impose a fine of up to Rs.10,000 on investors, Banks and mutual fund companies per folio for non-linkage of PAN and Aadhaar.

This is the reason you will receive emails & messages from your bank to promptly do it. MFs have reported around 17 Lakh folios where Adhar-pan linking is pending.

Here are some key consequences of non-linkage of PAN and Aadhaar according to KFinTech:

1. Penalty of Rs.10,000 per default u/s 272B on such customer/ vendor/ employee for not furnishing, intimating or quoting the PAN.
2. Penalty of Rs.10,000 per default on Bank/ Mutual Fund/ Insurance Company / Broker/ company / any other person accepting such PAN.
3. KYC status to be nullified: you will note be able to open, operate your DEMAT, MFs, Bank accounts.
4. Considered as non-compliance to SEBI regulations for maintaining invalid PANs.

Key Issues in PAN & Aadhar Linking

1. What about NRIs? – There has been no clear direction by Income Tax Department on this. But Obtaining Aadhar is NOT mandatory for Non-Residents. So it can be assumed they do not have to link Aadhar-PAN. Many NRIs have both PAN & Aadhar. So it is better to link them as you may have Banking, Broking & investing services in India or in the future. Better to do it now.
2. What in case of MINORS: Earlier many folios/accounts have been opened using Parent’s PAN. The parents should obtain a PAN for MINOR & update it with the child’s aadhar.
3. What if there is a Name Mismatch in PAN & Aadhar: Approach the UIDAI center or PAN Website & get the efficiency corrected and then link it. If you are approaching these, no they can also link the PAN & Aadhar.
4. Other Exceptions: HUF does not have Aadhaar, people of Sikkim do not have PAN cards. So they should wait for clear guidelines from Income Tax Authority.

5 Ways to link Aadhar-PAN

1. SMS – You can send an SMS like this -SMS to 567678 or 56161 from their registered mobile number in the following format: UIDPAN[SPACE][12-digit Aadhaar][SPACE][10-digit PAN].Example: UIDPAN 159312596789 AKSPP7894M
2. Income Tax Website Page for Aadhar – PAN Linking (Click Here)
3. Login to Income Tax Website & follow this process:
   1. Open the Income Tax e-filing portal. (Click Here)
   2. Register on it (if not already done). Your PAN (Permanent Account Number) will be your user id.
   3.  Log in by entering the User ID, password, and date of birth.
   4. A pop-up window will appear, prompting you to link your PAN with Aadhaar. If not, go to ‘Profile Settings’ on the Menu bar and click on ‘Link Aadhaar’.
   5. Details such as name date of birth and gender will already be mentioned as per the PAN details.
   6. Verify the PAN details on the screen with the ones mentioned on your Aadhaar. Pls. note that if there is a mismatch, you need to get the same corrected in either of the documents.
   7. If the details match, enter your Aadhaar number and click on the “link now” button.
   8. h) A pop-up message will inform you that your Aadhaar has been successfully linked to your PAN.
4. You may also visit UTI ISL Website (Click Here)
5. You may also visit NSDLWebsite (Click Here) to link your PAN and Aadhaar.

Do let us know if you have further issues by using the comments section below.