Here's why linking PAN card with Aadhaar is crucial by March 31
- If the PAN card is not linked to Aadhaar, an individual will also not be able to invest in mutual funds, stocks or open a bank account among other things as furnishing a PAN card in all those cases is a must.
Indians are advised to link their Permanent Account Number (PAN) with their Aadhaar card by March 31, 2022. If not done by the given deadline, the PAN card can become invalid and a fee of ₹1,000 may be required for linking the PAN card with Aadhaar thereafter, reported Hindustan Times's sister publication LiveMint.
If the PAN card is not linked to Aadhaar, an individual will also not be able to invest in mutual funds, stocks or open a bank account among other things as furnishing a PAN card in all those cases is a must.
“Earlier, the rules pertaining to the Aadhaar-PAN linking had no provision of penalty. According to the new law, failure to link the two IDs would result in the PAN becoming invalid, which further means that one cannot perform financial transactions requiring PAN details. These include filing an income tax return and opening a bank account. Also, the said individual might have to pay a higher TDS amount, plus a penalty of ₹10,000 will be imposed as per section 272B of the Income Tax Act, if the person fails to quote PAN as and when needed,” Mint quoted Amit Gupta, the Managing Director at SAG Infotech — a SEBI-registered income tax solution provider company, as saying.
How to link PAN and Aadhaar card:
Step 1: Visit www.incometax.gov.in
Step 2: On the homepage, click on the link which says ‘Our Services’
Step 3: Now, enter details including your PAN card and Aadhaar numbers, name, mobile number etc.
Step 4: Check box “I have only year of birth in Aadhaar card” if needed
Step 5: Click on the box that says “I agree to validate my Aadhaar details”. Hit continue.
Step 6: You will recieve a six-digit One Time Password (OTP) on your registered phone number. Enter the OTP on the verification page.
Step 7: Click on the ‘Validate’ option on the screen.
Meanwhile, the last date for filing the income tax returns for the financial year 2020-21 ended on December 31, 2021. Nearly 5.89 crore income tax returns were filed on the new e-filing portal till the December 31 deadline, the I-T department said on Saturday.