How to link your Aadhaar to your PAN: Fees, process and everything else you need to know

The Central Board of Direct Taxes (CBDT) issued guidelines mandating taxpayers link their permanent account number (PAN) with their Aadhaar by March 31, 2023. Any non-compliance will mean that the PAN will become inoperative on April 1, 2023.

In order to continue conducting transactions in the stock market, investors must link their PAN with their Aadhaar by the end of this month, according to the capital markets regulator Securities and Exchange Board of India (SEBI).

Who should link their PAN with Aadhar?

The Income-Tax Act mandates that every individual who has been assigned a PAN as of July 1, 2017, must link their PAN to their Aadhaar in accordance with a CBDT circular released in March 2022.

All SEBI-registered businesses and Market Infrastructure Institutions (MIIs) are needed to make sure that all users have proper KYC, as the PAN is the primary identifying number and a prerequisite for all securities market transactions.

In order to process income tax returns, the government of India mandated the process of linking the PAN card with the Aadhaar of every Indian citizen. Linking PAN with Aadhaar is also necessary for conducting banking transactions for an amount of Rs. 50,000 or above.

There are a few categories of people for whom this linkage is not necessary: 

• Anybody 80 years of age or older;
• According to the Income Tax Act, a non-resident;
• Someone who is not an Indian citizen

How to link PAN with Aadhar?

The procedure to link the PAN Card with the Aadhaar with a penalty is mentioned below:

• Visit https://www.incometax.gov.in/iec/foportal/
• Under the ‘Quick Links’ section, you will find the ‘Link Aadhaar’ option, on it

• On the next page, enter your name, mobile number, Aadhaar number, and PAN.
• Verify the information that is provided by ing on the ‘I validate my Aadhaar Details’ option.
• on ‘Continue’.
• You will receive an OTP on the registered mobile number. Enter the OTP and on ‘Validate’.
• Once the penalty is paid, the process of linking the PAN and Aadhaar will be complete.

There are two ways through which you can link PAN and Aadhaar:

1. Sending an SMS to 567678 or 56161

• To link PAN with Aadhaar by sending an SMS. You need to follow the steps mentioned below:
• Step 1: Type UIDPAN 12-digit Aadhaar 10-digit PAN on your mobile
• Step 2: Send it to 567678 or 56161

2. Through the Income Tax e-filing (https://www.incometax.gov.in/iec/foportal/) website

• Step 1: Visit Income Tax Site by ing on the link https://www.incometax.gov.in/iec/foportal/.
• Step 2: Under ‘Quick Links’, on ‘Link Aadhaar’. Provide the PAN, Aadhaar number, and name as mentioned in the Aadhaar card
• Step 3: Enter details such as PAN Number, Aadhaar number, your name on Aadhaar, and your mobile number, Tick the square if only the birth year is mentioned in the Aadhaar card, and also tick the box where you agree to get your Aadhaar details validated. on ‘Link Aadhaar’.
• Step 4: Enter the Captcha code. (Visually challenged users can request for an OTP instead of the captcha code. The OTP will be sent to the registered mobile number)
• Step 5: on the 'Link Aadhaar' button.