It is the last day of March. Why is it significant, you may ask? Well, it is the last day to link your PAN with Aadhaar. A lot of Public Service Announcements have been going about this for a while then. But what will happen in case you don't link the two? How do you link these? We explain it all here:
What is PAN?
PAN or the Permanent Account Number is an identifier issued to individuals by the Income Tax Department. The number is alphanumeric and 10-character long. It is also an identity proof. It is majorly used to keep a track of monetary transactions.
What is Aadhaar?
Aadhaar is a 12-digit unique identity number issued to citizens and residents of India based on their biometrics and demographic data. It is the worlds' largest world's largest biometric ID system. 1.260 billion people hold Aadhaar cards, as of August 2020.
Why should you link your PAN to your Aadhaar?
The union government has introduced an amendment under which a person will be liable to pay a late fee of up to Rs 1,000 in case of non-linking of PAN with Aadhaar, in the Finance Bill, 2021, passed by the Lok Sabha on Tuesday.
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What will happen if you don't link the two?
All the PAN cards which are not linked to Aadhaar would be technically useless after the deadline ends. If your PAN is not linked to your Aadhaar, from the 1st of April, you will not be able to do any financial transaction for which PAN is mandatory. This includes any financial transaction above Rs 50,000. You may also be levied a fine of Rs 10,000 as per Section 272B of the Income Tax.
Is your PAN already linked with your Aadhaar?
It's pretty easy to find out. All you have to do is go to www.incometaxindiaefiling.
How do you link the two if you haven't done it already?
Click on the 'Link Aadhar' option and fill in your details. It is that simple
In case you haven't registered yourself on the IT website, you can link the cards through http://incometaxindia.
Alternatively, you can send an SMS to 567678 or 56161. Follow the format UIDPAN< Aadhaa number>
So what are you waiting for? The clock is ticking!
