If you do not link your Aadhaar with PAN by the end of this month i.e. 30 June 2021, then there may be problems in banking services, debit and credit card payments, online payments through mobile banking and UPI. Apart from this, TDS (Tax Deduction at Source) may have to be paid at higher rates on interest income and dividend declared. If there is SIP then it can stop. This will happen because according to the amended rules of Income Tax, it is mandatory to link PAN with Aadhaar by June 30. If this is not done, then under Rule 114 AAA(3) of the Income Tax Act, the PAN can become inactive from July 1, 2021. When the PAN card is inactive, the task where it is needed will become difficult, as PAN card is mandatory for transactions above Rs 50,000.
It is also necessary to give information immediately after linking
If the PAN card becomes inoperative, TDS will be deducted at a higher rate of 20 per cent. However, the higher rate will only affect those where TDS is payable on interest earned on fixed deposits, dividends, etc. Tax deduction is the responsibility of the payer, so after the linking of Aadhaar and PAN, its information is deducted such as banks and post offices for interest income, companies for interest and dividends, assets for dividends received on mutual fund schemes. Management Companies (AMCs) etc. Even if you delay in giving this information, you may have to pay TDS at higher rates even after linking. This is because once the tax is deducted at higher rates, the payer will not initiate the process for its refund or adjustment and then the refund can be taken only by mentioning it in the ITR.
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These benefits from Pan-Aadhaar Link
- PAN will remain operative i.e. it will not be inactive.
- Functioning of banking transactions will be easy.
- There will be no interruption in credit card services.
- The possibility of levying TDS at higher rates on income from interest will end.
- No TDS will be payable at the higher rate of 20 per cent on declared dividend
- Trading and Demat accounts will remain active.
Process to link PAN with Aadhaar
1. Via SMS
PAN can be linked with Aadhaar by sending a message from your mobile. You have to write UIDPAN
For example, UIDPAN 111122223333 AAAPA9999Q
2. Online way
- Go to https://www.incometaxindiaefiling.gov.in/home.
- Click on ‘Link Aadhar’ in the Quick Links section on the left.
- Now in the page that will open, you have to fill your PAN, Aadhaar number and your name on Aadhaar.
- If only the year of birth is mentioned in your Aadhaar, then you have to tick this option- ‘I have only year of birth in Aadhaar card’.
- After that enter the captcha code and click on link aadhaar.
- After this a confirmation page will open showing that PAN has been successfully linked with Aadhaar.
3. Offline
PAN and Aadhaar can also be linked by visiting the service center of PAN service provider, NSDL or UTIITSL. For this, Form ‘Annexure-I’ has to be filled and some supporting documents like PAN card and Aadhar card copy have to be taken along. This process is not free. You have to pay a prescribed fee. This fee will depend on whether the PAN or Aadhaar details have been corrected at the time of linking.
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