Aadhaar-PAN linking: Your PAN card may not become invalid right away if it is not done by 30th June

The status of Aadhaar is the most confusing thing in India right now. While there are multiple notifications coming from the government making it mandatory for various services, the Supreme Court is hearing cases against the move and has been making observations or giving directives on the way ahead.

The government seems itself caught in a legal maze. So are the common people. At least that is what one can make out of the supreme confusion that is ruling over linking of PAN and Aadhaar.

Over the last 2 days there have been reports saying 30 June is the last day for linking both identity proofs. However, there are fresh reports saying 30 June is not the last date and the government is yet to announce a deadline.

In all this, the government has remained silent, without issuing any clarification.

However, let’s get one thing out of the way.

It is mandatory to link your Aadhaar card to your PAN card.

For those who do not have Aadhaar.

According to the Supreme Court, if you do not have an Aadhaar or do not wish to get an Aadhaar as of now, you don’t need to worry, at least for now. Your PAN will not be canceled in such a case. "Only a partial relief by the court has been given to those who do not have Aadhaar and who do not wish to obtain Aadhaar for the time being, that their PAN will not be cancelled so that other consequences under the I-T Act for filing to quote PAN may not arise," the CBDT had said in a circular.

For those who have an Aadhaar and PAN, I recommend that you get the numbers linked as early as possible. If you read the latest government notification you will realise that Aadhaar-PAN linking will become mandatory from 1 July and not before 1 July.

What if you can’t make it by tonight? Your PAN will become invalid, but only eventually.

According to a report in The Economic Times: After July 1, the linking will become mandatory and the government may declare a date after which the PAN not linked to Aadhaar will become invalid. The government has not declared that date yet.

Fear that PAN will become invalid has forced many to visit the Income Tax website and link their cards. The website became accessible for several hours due to high traffic. Even tax and investment experts say that there is confusion over regarding the issue. The government should have in no uncertain terms explained the consequences of not linking.

One thing is for sure. Since the government has not declared the deadline, you still have time to get it done. If you have errors in your cards, we suggest you get them fixed quickly and get the cards linked.

Even if the PAN becomes invalid immediately, your life is not going to come to stand still. Of course, there will be some pain points. You will have difficulties to make some financial transactions, which require PAN, or even file returns.

However, for those who have Aadhaar, it is better to go ahead and link it with PAN. That makes all your dealings with the government easier

How to Link Aadhaar card to PAN ?

As per a Supreme Court judgment passed on 9 June 2017, if you have Aadhaar, it is mandatory to link it to PAN and mention the same in your tax returns. However, if you don’t have Aadhaar, you can e-file tax returns without the same for FY2016-17.

Now you can link your Aadhaar and PAN through SMS also. The Income Tax Department has urged taxpayers to link their Aadhaar with their PAN, using an SMS-based facility.It can be done by sending an SMS to either 567678 or 56161.

Send SMS to 567678 or 56161 from your registered mobile number in following format:

UIDPAN<12 aadhaar="" digit=""><10 digit="" pan="">

Example: UIDPAN 123456789123 AKPLM2124M

People can also visit the official e-filing website of the department to link the two identities, in both the cases– identical names in the two databases or in case where there is a minor mismatch.

The Income Tax Department has made it easy for taxpayers to link their PAN with Aadhaar with just a 2 step process which does not even require  to login or register at the e- filing website. This facility can be used by anyone to link their Aadhaar with PAN.

2 step process to link Aadhaar with PAN

Step 1 :

Just go to www.incometaxindiaefiling.gov.in and click on the link on the left pane – Link Aadhaar

Step 2 :

Provide PAN, Aadhaar no. and ENTER NAME EXACTLY AS GIVEN IN AADHAAR CARD (avoid spelling mistakes) and submit. After verification from UIDAI which is the government website for Aadhaar, the linking will be confirmed.

In case of any minor mismatch in Aadhaar name provided, Aadhaar OTP will be required. Please ensure that the date of birth and gender in PAN and Aadhaar are exactly same.

In a rare case where Aadhaar name is completely different from name in PAN, then the linking will fail and taxpayer will be prompted to change the name in either Aadhaar or in PAN database.

The process of linking Aadhaar with PAN is also available after login to the income tax website.Following are the steps for this :

Step 1.

First register yourself at the income tax e filing portal, if you are not already registered.https://incometaxindiaefiling.gov.in/

Step 2.

Log in to the e-Filing portal of the Income Tax Department by entering the log-in ID, password and date of birth

Step 3.

On logging in to the site, a pop up window will appear prompting you to link your PAN card with Aadhaar card. If you don’t see the popup, go to blue tab on the top bar named ‘Profile Settings’ and click on ‘Link Aadhaar’.

Step 4.

Details such as name, date of birth and gender will already be mentioned as per the details submitted at the time of registration on the e-Filing portal. Verify the details on screen with the ones mentioned on your Aadhaar card.

Step 5.

If the details match, enter your Aadhaar card number and captcha code and click on the “Link now” button.

Step 6.

A pop-up message will inform you that your Aadhaar card has been successfully linked to your PAN card.

GST impact: What may get costlier, what may get cheaper

Here's a guide on what products and services may tentatively get costlier or cheaper.

GST: What could get costlier, what could get cheaper

Here’s how prices of goods could move after the new GST rates kick-in from July 1, 2017.

Cheaper Meals?

A restaurant bill now is a complex jumble of food costs, taxes on food and alcohol and services, cesses and service charges. After GST, you may expect eating out to be cheaper as a single tax will replace a welter of levies.

Costlier Calls

Your phone calls may become costlier. Phone bills will likely attract an 18 percent GST rate compared to the current 15 percent (including cesses).

Free state-borders

GST will subsume most state local levies, including the entry tax or octroi. Trucks will be able to move across state borders without queuing up for long hours to pay taxes. Municipalities and local bodies, however, can continue to collect local taxes. Brihanmumbai Municipal Corporation have, however, lifted the entry taxes for entering Mumbai after GST.

Costlier Services

Currently most services are taxed at a standard rate of 15 percent; these will turn costlier as the standard service tax rate is expected to go up to 18 percent.