You must have had an identity card in school or college. The primary purpose of those ID cards was to verify the identity of the students and ensure they get access to all facilities.
Similarly, we need to have an identity card for various services and taxes. This identity is our PAN and Aadhaar card. Have you linked your Aadhaar card with your PAN card? It is also essential to link Aadhaar with PAN card to strengthen this authentication.
But why is this authentication necessary in day-to-day life? The answer to this question lies in knowing about the two documents.
Let’s briefly understand the Aadhaar card and PAN card.
Aadhaar has a 12-digit unique identity number. You can get it if you are an individual in India, irrespective of age. Various biometric details like fingerprints, photographs, and iris scans are linked to the Aadhaar card. So, you can use this as proof of identification and address details.
Similarly, a PAN or Permanent Account Number is a 10-digit unique alphanumeric identification number for the citizens who pay tax. It is a card that helps the Income Tax Department (ITD) keep track of your earnings and the taxes paid by an individual to the government.
Linking a PAN card with an Aadhaar card has also become compulsory as the income tax return will not be processed if your Aadhaar card is not linked with the PAN card.
Now that we have learned about these cards, let’s dive into the linking process of Aadhaar card with PAN card.
You can link your PAN card with your Aadhaar card in three ways. Let’s look at each of them:
You can easily link your Aadhaar card with a PAN card through an online portal.
There is an e-filing website which can help you link your Aadhaar card with a PAN card. However, there are certain prerequisites for using the e-filing portal for generating, updating and linking your PAN. It is better to check them before you go further with your request.
Let’s look at the prerequisites:
On the e-filing website, you can also update your PAN information based on your Aadhaar eKYC and link the two. This process too automatically links your PAN with Aadhaar.
You can take the following steps:
You will be taken to the request successful page, where you will receive an acknowledgement number for your request. Use the number for future communication.
You can also link your Aadhaar card with your PAN card by sending an SMS:
You can also manually link your Aadhaar card with your PAN card by filling out a form available with NSDL or UTIITSL, depending on your chosen PAN service provider during application. Along with the form, a few documents should also be submitted online.
It is important to remember where you had applied for your PAN to visit the same portal for future corrections and duplicate PAN card applications.
So, have you linked your PAN and Aadhaar? Now, you can use your PAN to open a Fi account and start investing with the Fi money app. The Fi money app offers numerous features for saving, investing and gaining knowledge with research. Check out the Fi money app and manage your money smartly and securely.
You may think that when both cards are unique identification proof cards, why do we need to link the Aadhaar card with the PAN card?
Both the cards are necessary for registration and verification purposes. The government of India has made it mandatory for the citizens to link PAN cards with Aadhaar cards as there are specific purposes behind this.
The government wants to keep a record of all the taxable transactions of an individual or an entity, and the verification of identity and address can be done through your Aadhaar card. So, the government will have the list of transactions you do that can attract tax. Furthermore, all your income sources and destinations are linked with a single PAN. This can prevent tax evasion as individuals and other entities will no longer be able to hide their earnings from ITD.
The connection of the Aadhaar card with the PAN card has also become a great facilitator for the e-verification of Income Tax Returns. Complicated activities like sending the physical copies of Form 16, investment proofs and other receipts to IT departments for verification are not required. You can e-verify your returns using OTP verification with your Aadhaar card.
Your Aadhaar and PAN cards are the most important verification documents regarding your financial life. From opening a bank account to investing, you need to do your KYC. The linking of Aadhaar with PAN can ease this verification process.
When you start earning, you might want to invest some of this money and get good returns. You might also have various short-term, medium-term and long-term financial goals. When you invest to meet these goals, you make capital gains on them. These can be Short-term capital gains (STCG) or long-term capital gains (LTCG). These gains can incur different tax rates, which are recorded through your PAN.
You need to have an Aadhaar number and a valid mobile number linked to it to open an e-filing login. This portal can help you create an instant e-PAN card and link it to your Aadhaar. Once your PAN and Aadhaar are linked, you can create login credentials for your e-filing portal by entering your PAN or Aadhaar number.
You can also view your tax records and file income tax returns using this portal.
Is your Aadhaar and PAN card ready? Quickly check your tax liability for the financial year. What’s your income slab? If it’s beyond the tax-free threshold, making a tax-saving investment using the 80C tax-saving instruments can help. You can reduce your taxable income by ₹1.5 lakh every financial year by investing in ELSS. Use the Fi money app to set your SIP date and amount and easily save taxes.
Of all the cards in your purse, the PAN and Aadhaar are the most important ones for defining your finances and identity. There are numerous benefits and conveniences of linking your PAN with your Aadhaar card. Also, the process of linking them is simple, fast and secure. And all of this is without charges.
So, complete your PAN and Aadhaar linking if you haven’t and get all the conveniences associated with it.
You can link your mobile number with your PAN card by sending an SMS to either 567678 or 56161. The format for the SMS is: UIDPAN<space>12-digit Aadhaar number<space>10-digit PAN number<space>Mobile Number. Once the SMS is sent, you will receive an OTP which you need to use to complete the process.
It's worth noting that you can also link your mobile number with your PAN card online by visiting the Income Tax e-filing website or via mobile app of PAN service providers.
In India, linking your PAN card with your mobile number is not mandatory, but it is recommended as it can help to ensure that your PAN card remains active and that you receive important communications from the Income Tax Department. Additionally, if you have not linked your mobile number with your PAN card and you are required to file income tax returns, then the e-filing of returns may not be possible. Also, if you want to make changes or corrections to your PAN card, linking your mobile number can help to facilitate the process.
In conclusion, it's a good idea to link your mobile number with your PAN card to ensure that your PAN card remains active and you can take advantage of various services offered by the Income Tax Department.