Aadhaar-PAN link: The Income Tax Department has recently issued a detailed guide outlining step-by-step instructions on how individuals can link their Aadhaar number with their Permanent Account Number (PAN). This initiative aims to facilitate the process for taxpayers and prevent the deduction of higher Tax Deducted at Source (TDS) rates.
By linking Aadhaar and PAN, taxpayers can avoid facing higher TDS rates on various financial transactions and income sources.
“Kind Attention, Taxpayers! To avail of the benefits of CBDT Circular No.6/2024 dtd 23rd April 2024, do remember to link your PAN with your Aadhaar before May 31st, 2024,” the income tax department shared in a post on social media platform X on May 29.
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Here are the steps to be followed to link your PAN with Aadhaar
1) Visit the e-Filing Portal Home page and click on ‘Link Aadhaar’ in the Quick Links section, or log into the e-Filing portal and click on ‘Link Aadhaar’ in the Profile section.
2) Enter your PAN and Aadhaar Number.
3) Click on ‘Continue’ to Pay Through e-Pay Tax.
4) Enter your mobile number to receive OTP.
5) After OTP verification, you will be redirected to the e-Pay Tax page.
6) Click on ‘Proceed’.
7) Select the relevant Assessment Year and Type of Payment as ‘Other Receipts’ (500) and click ‘Continue’.
8) After successful payment, revisit the ‘ Link Aadhaar’ page.
9) Once the payment details are verified, click ‘continue’ to submit the PAN-Aadhaar link request.
According to the CBDT circular dated April 23, 2024, “Consequent to the notification substituting rule 114 AAA of the Income-tax Rules, 1962 (the Rules) vide notification no. 15 of 2023 dated 28th March, 2023, it is hereby clarified that a person who has failed to intimate the Aadhaar number following section 139AAA of the Income-tax Act, 1961 (the Act) read with rule 114AAA shall face the following consequences as a result of his PAN becoming inoperative: refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made to him; interest shall not be payable to him on such refund for the period, beginning with the date specified under sub-rule (4) of rule 114AAA and ending with the date on which it becomes operative; where tax is deductible under Chapter XVII-B in case of such person, such tax shall be deducted at a higher rate, following the provisions of section 206AA; where tax is collectable at source under Chapter XVII-BB in case of such person, such tax shall be collected at a higher rate, under the provisions of section 206CC.”
Read More: I-T dept asks taxpayers to link PAN with Aadhaar by May 31 to avoid higher TDS deduction
Who needs to link Aadhaar and PAN?
According to Section 139AA of the Income Tax Act, individuals with a Permanent Account Number (PAN) assigned before July 1st, 2017, and eligible for an Aadhaar number, must disclose their Aadhaar number using the specified form and method.
- Your PAN will become inoperative if you do not link it with Aadhaar.
- Refund of any amount of tax or part thereof shall not be made
- Interest shall not be payable
- Tax shall be deducted at a higher rate
Tax shall be collected at a higher rate per the provisions of section 206CC.
ITR filing due date for FY 2023-24
The deadline for filing your Income Tax Returns (ITR) for the income earned in FY 2023-24 (AY 2024-25) is 31 July 2024, without incurring any late fees.
