Everyone who has a Permanent Account Number (PAN) and an Aadhaar number (eligible to obtain an Aadhaar), must link their PAN with Aadhaar as per the provisions of Section 139 AA of the Income Tax Act 1961.
Non-linking of PAN with Aadhaar shall make your PAN inoperative.
How To Link PAN Card With Aadhaar Card?
Here’s a step-by-step guide to link your Aadhaar card with your PAN -
Step 1: Visit the e-filing Portal and click on Link Aadhaar under the Quick Links section.
Step 2 - On the following page, enter your PAN and Aadhaar Number.
Step 3 - If your Aadhaar and PAN are not linked, on the following, enter your name as per your Aadhaar card and mobile number. Check the ‘I agree to validate my Aadhaar details’ and click the ‘Link Aadhaar’ button to proceed with verification.
Step 4 - On the verification page, enter the OTP received on the registered mobile number. And click on Validate to proceed.
Step 5 - Upon successful verification, the request for Aadhaar-PAN linking will be sent to the UIDAI for validation.
Do I Have To Pay A Penalty For Not Linking Aadhaar and PAN Card?
The due date for linking Aadhaar and PAN was 30th June 2023. Everyone who is linking their PAN and Aadhaar after the due date has to pay a penalty.
To complete the PAN-Aadhaar linking request, you must make the payment through e-Pay Tax. Upon successfully paying the penalty, you need to raise your PAN - Aadhaar linking request again.
Conclusion
While PAN-Aadhaar linking is not mandatory for NRIs/ OCIs whose tax residency is updated as Non-Resident. However, it is best to link your Aadhaar (if you have it) with your PAN.
But if you do not have an Aadhaar card, then linking with PAN is neither possible nor mandatory.
For NRIs with a PAN over 10 Crore, our blog addresses the specific challenges related to inoperative PANs
Frequently Asked Questions (FAQs) - PAN Aadhaar Linking
Is it mandatory for NRIs to link PAN with Aadhaar?
No, it is not mandatory for NRIs to link their PAN and Aadhaar. However, if you have an Aadhaar, it is best to link it.
How do I link PAN and Aadhaar if there is a mismatch in name or date of birth?
If your date of birth or name does not match, you need to update your Aadhaar card data.
Can I file my ITR if my PAN and Aadhaar are not linked?
Not all NRIs/ OCIs have an Aadhaar card to link it to their Indian PAN. In such scenarios, you must ensure that your residential status is updated as Non-Resident on the income tax portal. This is necessary, or else your PAN will become inoperative.
Can I change the mobile number that is registered with Aadhaar?
Yes, you can change the mobile number registered with Aadhaar. However, you need to be physically present in India to do so. You need to visit the nearby Aadhaar Enrolment Centre and submit a change request form along with document proofs.
What documents do I need to link PAN with Aadhaar?
You do not need any documents to link your PAN and Aadhaar. However, you need to know your PAN and Aadhaar numbers and keep your registered mobile number active. You will get an OTP on the registered mobile number for verification.