Effective from 1st July 2017, it is mandatory to quote Aadhaar for the filing of IT Returns and also linking Aadhaar with PAN. However, many taxpayers were unable to link their Aadhaar with their PAN. How to resolve this issue?
- As expected, the date for linking PAN & Aadhaar has been extended to 30th June, 2023.
- I updated this post again on 2nd July 2017, after IT Dept started linking Aadhaar with PAN by visiting the designated PAN Centers (Refer:-How to link Aadhaar with PAN Card OFFLINE (Download Form)?) was activated. Now I have explained all the possible methods IT Dept provided for linking Aadhaar with PAN. You can now link Aadhaar with PAN using 1) log in to IT Portal, 2) Without Login to IT Portal, 3) Using the SMS facility, and 4) Through designated PAN Centers using OFFLINE mode.
In the Budget 2017, a new provision was inserted, making the quoting of the Aadhaar number mandatory in the application form for PAN. Also, effective from 1st July 2017, it is mandatory to quote your Aadhaar number while filing an IT Return.
The intention is to identify the persons who avoid taxes by having multiple PAN cards. However, the implementation is not so smooth sailing. Because now all PAN card holders must have an Aadhaar card. Also, whoever trying to apply for the new PAN, must first have an Aadhaar card. Otherwise, the existing PAN cards will be treated as invalid.
What will happen if your PAN card is treated as invalid?
TDS will be deducted at a flat rate in many cases. You are unable to file an IT return and pay the dues or claim the tax refund. You will not be able to acquire or sell the property or a motor car, open a bank or Demat account, purchase mutual fund units or debentures or bonds exceeding Rs.50,000, or pay life insurance premium exceeding Rs.50,000 without submitting Form No.60. Because, for all these transactions, PAN is mandatory.
Considering all these aspects, it is very much important to link your Aadhaar with your PAN Card.
How to link Aadhaar with PAN by login?
Before jumping into the problem of being unable to link an Aadhaar with a PAN, let us first try to understand the procedure of linking an Aadhaar with a PAN card.
Do remember that you not need to upload any copies. Instead, IT Department will validate the Aadhaar database.
Step 1-Visit the e-Filing portal login page and log in to your account.
Step 2-Go to the tab “Profile Settings” and from the drop-down menu, select the option “Link Aadhaar”.
Step 3– Earlier you just have to enter your Aadhaar number, and the code and click on the tab “Link Aadhaar”. This looks like the below.
However, now after so many issues and mismatches in Aadhaar and PAN card database, IT Department found the solution and inserted one more new option, where you have to provide your name AS IT APPEARS IN AADHAAR. Then click on “Link Aadhaar”.
It now looks like the below.
Step 4-You will get the successful message or unsuccessful message as below. If you receive the successful message, then you not need to worry.
You can see the below successful message on the portal.
Along with this, you will also receive the successful email as below.
How to link Aadhaar with PAN without login?
Now you do not need to log in to e-Filing or IT portal for linking of Aadhaar with your PAN. Just follow these below steps to link your Aadhaar with your PAN without login.
Step 1– Visit the e-Filing Portal.
Step 2– Click on Link Aadhaar link. The screen looks like below. Enter details like PAN number, Aadhaar number, NAME AS PER AADHAAR, enter the Captcha code, and click on the tab “Link Aadhaar”.
Once the data entered with you match with UDAI and IT Dept data, then you will get the linkage successful message.
How to link Aadhaar with PAN using SMS facility?
Now IT Department started linking Aadhaar with PAN using the SMS facility. The steps are explained as below.
Note-Use this facility when the name in Aadhaar and PAN are identical. Also, the number registered with Aadhaar and IT Portal must be the same.
You have to send an SMS to 567678 or 56161 in the following format.
UIDPAN<Space><12 digit Aadhaar No.><Space><10 Digit PAN No.>
Example SMS to 567678 or 56161 as below.
UIDPAN 111111222233 AAAPT8888H
Unable to link Aadhaar with PAN – What are the alternatives?
As I pointed out above, if you receive the successful message, then you no need to worry further. However, if you receive the failure message as above, then it means that you are unable to link your Aadhaar with your PAN.
The reasons for being unable to link Aadhaar with PAN are as below.
# Your Name, date of birth, or Gender in the PAN database may be different from that of the Aadhaar Card.
# Aadhaar number you entered may be wrong or does not exist in the Aadhaar database.
The problems mainly faced are by south Indians. Because your name may be V. Rangaswamy in Aadhaar but in PAN it may be V Rangaswamy (without the DOT) or Venkat Rangaswamy.
This is just an example and you may find many such small errors in the name. Hence, the biggest reason why you are unable to link your Aadhaar with PAN is mainly due to the name difference between the PAN card and your Aadhaar Card.
Because the date of birth and gender usually in many cases will be the same.
Now you will come to know the reasons easily if you cross-check with PAN Card and Aadhaar Card. The solution is to identify what to do next.
There are two alternatives one can correct it. Either you have to correct the name in PAN Card or in Aadhaar Card.
e-Filing Portal now provided the link of how to correct either PAN or Aadhaar. You just have to click the link from e-Filing portal (which is below the “Link Aadhaar” tab called as “Links to correct name”. Once you click that link, then the screen looks like below. As per the choice of which one you want to correct, you click on any one link.
Unable to link Aadhaar with PAN Card- How to correct in PAN Card?
Let me first explain the process of correcting the name on your PAN Card as per your Aadhaar Card. But do remember one important aspect of changing your name with a PAN card is that you have to submit fresh KYC to update the name with your bank, mutual funds, or with any other investments you did (including an insurance company).
Few points to update your name on your PAN card are as below.
- The fee for processing a PAN application is Rs.107.00 ( 93.00 + 15.00% service tax).
- Payment can be made by Demand Draft, Credit Card / Debit Card or by using Net Banking.
- You can correct your name, date of birth, and gender also (Along with these updates, you can also change your signature, photo, father’s name, or address).
- You can update the data either offline or online.
- To update or correct data offline, use “Form for changes in PAN” form and send this with your valid documents.
- To update or correct data online, use the link of NSDL. In the application type, select the option of “Changes/Correction in existing PAN Data”.
- Fill in the details and submit it online and send the valid documents. The complete procedure of online correction in PAN is explained HERE.
Unable to link Aadhaar with PAN Card- How to correct in Aadhaar Card?
The second option to correct your data is updating the Aadhaar details. You can update or correct the data in your Aadhaar either by submitting your request Online or Offline (Refer to this link for updating Aadhaar Offline). Updating Aadhaar details is purely free.
If you plan to use Online mode, then it is mandatory that you must be linked your mobile number to the Aadhaar Card database. Because UDAI will send you OTP and sometimes may call you for verification.
You can change your name, gender, date of birth, address, mobile number, and email id. The complete process is explained in the below video of UDAI.
Now you come to know the procedure of how to link Aadhaar to PAN. Also, you came to know what are the alternatives to you if you are unable to link Aadhaar with PAN. But which option do you feel is the best to update the data and link Aadhaar to PAN?
After the huge uproar by many taxpayers, IT Department came up with a simple solution. They said “In case the taxpayer is unable to link PAN with Aadhaar because of discrepancy in name, they can log into the Aadhaar website, request for a name change and upload a scanned copy of PAN card. However, the registered mobile number with UIDAI has to be functional,”.
As per me, this seems to be the best and easiest solution than paying for a PAN Card update and doing the KYC process once again.
Also, IT Department is planning to introduce an option on the e-filing portal through which taxpayers can choose to link the Aadhaar without changing the name by opting for a One-Time Password (OTP), provided that the year of birth of the person matches both documents. Until this happens, it is a nightmare for all those taxpayers who are unable to link Aadhaar with PAN.