PAN Aadhaar Linking

Computer Awareness

The Permanent Account Number (PAN) card and Aadhaar card are critical identification documents for Indian citizens. The Income Tax (IT) department issues the PAN card, while the Unique Identification Authority of India (UIDAI) issues the Aadhaar card.

PAN is a unique identification number issued to individuals and businesses for tax purposes. The Aadhaar number is a 12-digit unique identification number issued for all residents. However, the IT department has made linking PAN and Aadhaar cards mandatory.

Circular on PAN-Aadhaar Linking

Section 139AA This section mandates that linking of PAN with Aadhar is mandatory for all taxpayers to provide the Aadhar card details when filing their income tax returns.

The IT department issued a circular that it is mandatory for all PAN-holders (except those who fall under the exempt category) to link their PAN-Aadhaar within 30th June 2023. Initially, the IT department mandated to link PAN-Aadhaar by 31st March 2022 and then extended it to 30th June 2022. However, people who linked their PAN-Aadhaar between 1st July 2022 to 30th June 2022 had to pay a fine of Rs.500.

Subsequently, the IT department extended the last date to link PAN-Aadhaar to 30th June 2023. PAN holders who link PAN-Aadhaar between 1st July 2022 to 30th June 2023 must pay a penalty of Rs.1,000. PAN card will become inoperative from 01st July 2023 if PAN holders do not link it with their Aadhaar card. The IT department has mandated linking PAN-Aadhaar to regulate and curb tax evasion.

Who falls under the exempt category for PAN-Aadhaar linking?

The exempt category people need not link PAN-Aadhaar within 30th June 2023. The exempt category is as follows:
  • (i) NRIs
  • (ii) Not a citizen of India
  • (iii) age > 80 years at any time during the previous year
  • (iv) state of residence is ASSAM, MEGHALAYA or JAMMU & KASHMIR

Last date to link PAN with Aadhaar card

The last date for PAN-Aadhaar linking is 30th June 2023. PAN cards not linked with Aadhaar will become inoperative after 1st July 2023.

Method of linking Aadhar Number with PAN :

Please make sure fee payment is done under Minor head 500 – Other Receipts(500) and Major head 0021 [Income Tax (Other than Companies)] in single challan.