Is It Mandatory To Link Aadhaar Number With PAN? Find Your Answer Here

The Finance Act, 2017 had inserted a new Section 139AA in the Income-tax Act, 1961, requiring every person who is eligible to obtain Aadhaar to quote his Aadhaar number while applying for PAN or furnishing return of income with effect from July 1, 2017, according to the official website of Income Tax India.

If any person does not possess the Aadhaar Number but he had applied for the Aadhaar card then he can quote Enrolment ID of Aadhaar application Form in the ITR
Section 139AA further provides that every person who has been allotted PAN as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number shall intimate his Aadhaar number on or before a date to be notified 31-03-2022 to the Income-tax Department. In case of failure to intimate the Aadhaar number, PAN allotted to the person shall be made inoperative after the date so notified.

The CBDT has notified1 that all the consequences provided under the Income-tax Act for not furnishing, intimating or quoting PAN shall come into effect from 01-04-2023 if PAN becomes inoperative due to non-linking of it with Aadhaar. However, the taxpayer is liable to pay fee under Section 234H if PAN is linked with Aadhaar from 01-04-2022 to 31-03-2023, as per the Income Tax India website.

1. How to link Aadhaar Number With PAN using e-Filing Portal?

Taxpayer is required to login on e-Filing portal using his registered username and password. After login, he will get the "link Aadhaar" option under his 'Profile Settings'. Aadhaar number will be linked with PAN if name and date of birth of taxpayer is identical to Aadhaar and PAN.

2. What is the fee for default relating to intimation of Aadhaar number?

The Finance Act, 2021 has inserted a new Section 234H to levy a fee for default in intimating the Aadhaar Number. If a person is required to intimate his Aadhaar under Section 139AA and such person fails to do so, he shall be liable to pay a fee, as may be prescribed, not exceeding Rs. 1,000 at the time of making such intimation.

Therefore, if the person fails to link PAN-Aadhaar by due date, he shall be liable to pay a fee, maximum of Rs. 1,000. This fee shall be in addition to the other consequences the person has to face if PAN becomes inoperative due to non-intimation of Aadhaar.

The CBDT vide notification No. 17/2022, dated 29-03-2022 has amended Rule 114 to prescribe the fees to be levied if Aadhaar is not linked with PAN. As per Rule 114(5A), if a person intimates his Aadhaar number after the due date, then he shall be liable to pay a fee of:

a. Rs. 500, if such intimation is made between 01-04-2022 and 30-06-2022; and

b. Rs. 1,000, in all other cases

3. How to link Aadhaar number with PAN using SMS facility?

Taxpayer who wants to link their Aadhaar number with PAN is required to send SMS to 567678 or 56161 in following format:
UIDPAN
Example of SMS to 567678 or 56161:
UIDPAN 111122223333 AAAPA9999Q
Aadhaar number will be linked with PAN if name and date of birth of taxpayer is identical to Aadhaar and PAN.