Economy

Rush! Last date for linking PAN and Aadhaar is fast approaching

Shishir Sinha New Delhi | Updated on September 27, 2019 Published on September 27, 2019

PAN numbers not linked to Aadhaar will become invalid after Sept 30

Come September 30, your PAN number will become invalid if it has not been linked with Aadhaar.

PAN is the 10-character alpha-numeric identity issued by the Income Tax Department, while Aadhaar is a 12-digit unique identity issued by the Unique Identification Authority of India (UIDAI).

As on March 31, 2019, over 44.57 crore taxpayers had been allotted PAN; of this, nearly 98 per cent or 43.52 lakh were individual tax payers. As on date, more than 124.45 crore Aadhaar identity cards have been generated.

There are two easy ways to link these two identities. One, visit http://www.incometaxindiaefiling.gov.in and complete the procedure. Alternatively, one can SMS 567678 or 56161 from your registered mobile number in the format:UIDPAN<SPACE><12 digit Aadhaar><Space><10 digit PAN>Example: UIDPAN 123456789123 ABCDE1234M

The Supreme Court’s judgement on Aadhaar, has made it clear that if one has both Aadhaar and PAN, then linking them is mandatory. If the assessee does not hold an Aadhaar number, then PAN would not be considered invalid. However, if an assessee holds an Aadhaar number, it should be intimated to the Department.

Accordingly, the Income Tax Department had issued a notification dated March 31, 2019, extending the deadline for linking PAN and Aadhaar one more time to September 30, 2019. It also said that quoting Aadhaar would be mandatory for filing income tax returns from April 1, 2019.

The e-filing website of the Income Tax Department says that more than 6.77 crore of 8.47 crore individual registered users have linked their Aadhaar numbers. There are over 2.58 crore people who have not registered, but have linked their PAN. Since one can register on this website on the basis of PAN, it can be said that most return filers have linked their Aadhaar with PAN. Overall, of the 44 crore-plus PAN numbers generated, it is estimated that nearly 28 crore have linked this number with Aadhaar till date.

Since the Finance Act, 2019, has prescribed interchangeability of PAN and Aadhaar, if one does not have PAN, he or she can quote the unique identity number for all 18 financial transactions where quoting of PAN is mandatory. Here too, an SMS alert would be generated.

Meanwhile, if an individual does not have PAN and he/she quotes Aadhaar, then the Income Tax Department would allocate a PAN from the back-end automatically.

If your PAN is invalid, it can be a hindrance in various financial transactions. Rule 114B of the Income Tax Rules prescribes 18 types of financial transactions where quoting PAN is mandatory. These include all transactions related to the sale or purchase of a motor vehicle or vehicle (not including two-wheelers), opening a bank account (not including Jan Dhan Account or a basic account), making an application for issue of credit or debit card, and opening a demat account.

The same would be applicable where a cash payment of over ₹50,000 has to be made to a hotel or restaurant against a bill or bills at any one time, for travel to a foreign country or for purchase of foreign currency at any one time, for payment to a mutual fund for purchase of its units and payment to the Reserve Bank of India, for acquiring bonds issued by it. Quoting PAN is mandatory if one has to deposit more than ₹50,000 on one day in a bank, co-operative bank or post office. This was also made mandatory for deposits aggregating to more than ₹2.50 lakh during the period November 9, 2016 and December 30, 2016.

How to link PAN and Aadhaar

1. Go to http://www.incometaxindiaefiling.gov.in and complete the procedure. One can login using the PAN.

2. SMS to 567678 or 56161 from your registered mobile number in the following format: UIDPAN<SPACE><12 digit Aadhaar><Space><10 digit PAN> Example: UIDPAN 123456789123 ABCDE1234M

 

 

Published on September 27, 2019
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