The Indian government has recently simplified financial methods to reduce tax evasion. Such steps include mandatory linking of PAN with Aadhaar. This measure provides each taxpayer a unique identifier to help make returns filing easier and avoiding fraud. Yet many don’t understand the consequences or penalties for not linking these 2 critical documents. This blog discusses the penalties for not linking your pan with Aadhaar and what you need to do before the pan aadhar link last date.
Important Point of Linking PAN with Aadhaar
The PAN card is a ten digit alphanumeric number issued by Income Tax Department to people, businesses and entities doing taxable business transactions. The association of PAN with Aadhaar provides every taxpayer a distinct identity for tax compliance and avoiding tax evasion.
Consequences of Not Linking PAN with Aadhaar
Not linking your pan with Aadhaar prior to the pan aadhar link last date might have severe consequences:
1. Difficulty in filing Income Tax Returns
In case your Aadhaar and PAN aren’t linked, the income tax authorities will refuse your ITR and you won’t be submitting returns or even getting refunds.
2. Access to government Services
Some Government services require PAN & Aadhaar. They include applying for a passport, getting subsidies and establishing a savings account. To access these services is problematic without linking these documents.
3. Obtaining new PAN Card
If your PAN card is destroyed, misplaced or even stolen, you’ll have a tough time finding a brand new one without connecting it to Aadhaar.
4. Higher TCS or TDS Rates
The income tax division might levy or pick up TDS or even TCS at higher rates in case your Aadhaar and PAN aren’t linked. And obtaining a refund could be tougher.
5. Suspension of Demat Account
If your Aadhaar and PAN aren’t connected, the depository participant suspends your Demat account.
PAN Aadhaar Link Penalty
In case you don’t link the documents before the pan aadhar link last date, you can be fined up to 10,000 under the Income Tax Act.
Exceptions to PAN-Aadhaar Linking Requirement
Many individuals need to link their PAN with Aadhaar, but there are several exceptions:
– NRIs.
– People who are not the citizens of India.
– Individuals who are 80 + years of age.
– Residents of the UT of Jammu and Kashmir, or the State of Assam, plus Meghalaya.
These don’t have to link their PAN with Aadhaar. However, NRIs should update their NRI status with the income tax department to stay away from losing their PAN card.
Check PAN Aadhaar Link Status
In case you’re uncertain whether your PAN is associated with Aadhaar, check out the condition using these steps:
1. Go on the income tax Portal Visit new Income Tax portal at [www.incometax.gov.in].
2. Go to services & Link Aadhaar- Know Your Aadhaar PAN Link Status.
3. Enter your PAN or Aadhaar details and click ‘View Link Aadhaar Status’. This will show whether your documents are linked.
How to Link PAN with Aadhaar
In case your Aadhaar and PAN aren’t connected yet, follow these steps to finish the linking:
1. Go to the Income Tax Portal first of all.
3. Click on Link Aadhaar Status and enter your Aadhaar and PAN information.
3. Validate & Pay Click ‘Validate’ then ‘Continue to Pay Through E-Pay Tax’. Enter your PAN, confirm and enter your registered mobile number.
4. Enter OTP Click ‘Continue’ and type in the 6 digit OTP which was delivered to your registered mobile number.
5. Payment Select the ‘Assessment Year’, Select a payment method and click’ Payment’. Download the receipt for your records.
6. Final Linking After 4-5 days visit the portal again, just click on’ Link Aadhaar’and enter the OTP to complete the linking.
Conclusion
To link your PAN to Aadhaar is an important step for smooth financial transactions and income tax compliance. The government requires that these documents be linked, except for some exempted people, to identify every taxpayer and curb tax evasion. The pan aadhar link last date is a significant deadline to avoid penalties along with other financial complications.
The PAN Aadhaar Link Penalty is substantial (up to 10,000) and failing to link up can affect ITR filing, government services and mutual fund investing. Consequently, check your PAN Aadhaar link status and complete the linking process in case needed. You then can trade in the stock market confidently and without interruption to your financial life.
Hence, PAN-Aadhaar linkage is a regulatory requirement and also a legal requirement to safeguard your financial future and comply with Indian tax laws. Link your PAN to Aadhaar before the deadline to stay away from fines and get access to financial benefits as you want.
FAQs
How to check in case my PAN card is linked with an Aadhaar card?
To see in case your PAN card is link with your Aadhaar card, do the following steps:
1. Visit the income tax portal first of all.
2. Scroll down to ‘Our services’ and there you must click on ‘Link Aadhaar- Know Your Aadhaar-PAN Link Status’.
3. Enter your PAN & Aadhaar details.
4. Click’ View Link Aadhaar Status’. In case your documents are currently linked, the status is going to show.
Is PAN-Aadhaar linking free?
PAN isn’t totally free to link with Aadhaar. New guidelines from the income tax department say a fee of 1,000 is levied to link PAN with Aadhaar. This fee may be paid out on the income Tax portal via E-Pay tax service.
Is it compulsory to link PAN with Aadhaar card?
Yes, most Indians must link PAN with Aadhaar card. The exceptions are non Resident Indians, Non citizens of India, individuals more than eighty and residents of Kashmir and Jammu, Assam and Meghalaya. The government required this linking to make certain of taxpayer identification and to stop tax evasion.
What if PAN card isn’t associated with Aadhaar card?
In case your PAN card isn’t linked together with your Aadhaar card you then can face various consequences :
1. ITR Filing: You can’t file your Income Tax Return and could face penalties and for requesting a tax refund.
2. Government Services: Services like getting a passport, obtaining subsidies and opening a savings account will prove tough, etc. among many other such disadvantages.
Can Aadhaar Number be linked with PAN through SMS Facility?
Yes, you can link Aadhaar number with PAN by means of SMS facility. Follow these steps :.
1. Type an SMS in the text format : UIDPAN SPACE & 12 digit Aadhaar 10 digit PAN
2. Send this SMS from your registered mobile number to 567678 or 56161.
3. A confirmation message with linkage status will be delivered to you after successful submission.
This offers a means to link Aadhaar with PAN without going to income tax portal in case your mobile number is associated with both PAN and Aadhaar.
