The deadline to link PAN with Aadhaar card has already passed, and it is now not possible to link both instruments without paying a prescribed fine. PAN cards not linked with Aadhaar have already been deactivated. However, UIDAI and the Income Tax Department have made provisions to link both instruments after paying the fine.
Importance of Linking PAN with Aadhaar
PAN is one of the most important documents that is used for validating most of the financial transactions. Linking Aadhaar with PAN is mandatory. Let us understand why linking PAN with Aadhaar is important for all taxpayers:
- Failure to link both documents leads to the deactivation of PAN, which in turn can invite penalties and restrict your ability to carry out financial transactions involving PAN.
- It helps eliminate the possibility of multiple PAN cards issued to the same individual, ensuring better identity verification.
- An active PAN card makes it easier to authenticate your identity, facilitating smoother processing of loans, opening bank accounts, and other financial activities.
- It allows the government to track financial transactions better and ensures transparency, helping to reduce tax evasion.
- The Income Tax Department has made it compulsory to link PAN with Aadhaar for filing income tax returns.
Common Reasons for Aadhaar-PAN Linking Failure
There are instances where applicants are not able to link PAN (Permanent Account Number) with Aadhaar for various reasons. The primary reason in this case is the mismatch of the data in both documents.
It is worth mentioning that your PAN will be linked with Aadhaar only if all details in both documents match with each other.
Another reason behind this failure is that the PAN or Aadhaar is already linked to a different PAN.