Citizens of India who have been allotted a 12-digit Aadhaar number will have to have it linked to their PAN. Those who are planning on applying for a PAN card will also have to quote their Aadhaar number when they do so. The Finance Act of 2017-18 has made Aadhaar a necessary requirement for the filing of tax returns provided that your PAN has been linked with your Aadhaar. Linking the two is expected to keep a tab on tax evasion. According to a notice by the government, those who fail to link their Aadhaar and PAN will have their PAN canceled.
It has been reported that over 2.07 crore taxpayers residing in India have already linked their Aadhaar and PAN card. Currently, there are over 115 crore people who have an Aadhaar card where as there are over 25 crore PAN card owners in the country.
The Government of India has declared that every Permanent Account Number (PAN) holder has to connect his or her number to their Aadhaar from July 1, 2017. You will soon have to start quoting your Aadhaar when you apply for PAN or while filing your income tax returns.
In Form 49A, a new section has been added to enter the Aadhaar number while one is applying for PAN. The Income-tax Rules of 1962 have been amended to declare that whoever has PAN must mandatorily quote his or her Aadhaar number to the income tax authorities.
PAN and recently even Aadhaar have been made compulsory for creation of bank accounts and making cash transactions.
As per the latest declaration from the government, the linking will be mandatory from 1 July, and not before it. After July 1st, the government would declare a date after which PAN cards not linked to Aadhaar will be invalidated.
Individuals applying for new PAN post July 1 would have to quote their Aadhaar numbers mandatorily. Quoting of Aadhaar is also mandated when filing income tax returns.
Login to the income tax e-filing website, https://incometaxindiaefiling.gov.in/ and access the ‘Profile Settings’ menu option. Click on ‘Link Aadhaar’. A form will be displayed in which you have to update your name, gender, date of birth, and Aadhaar details.
Submit the form to complete the process. You will receive a confirmation email at your registered email ID.