PAN-Aadhaar Link: If you haven't linked your PAN card and Aadhaar yet, be warned..

Imagine you're at the bank to get some work done or to use your new credit card for a special occasion. But as soon as you present your PAN card, the employee tells you that the card has been deactivated. It's easy to imagine the anxiety and fear that you feel at that moment. The Indian government and the Income Tax Department have repeatedly warned that if you don't link your PAN with Aadhaar by December 31st, your PAN card will become just a piece of plastic.

The Income Tax Department has made it clear that this process is mandatory by the end of this year. Those who received their new PAN after October 1st, 2024, have very little time left. For others, the original deadline has already passed, but this is a final warning.

The Penalty and the Lack of Time

If you think this will be done for free, you're wrong. The actual deadline for linking your PAN with Aadhaar has long passed (May 31, 2024). Now, if you complete this process by December 31, you will have to pay a fine of ₹1,000. This fine is a punishment for the delay you have experienced over the past several months.

Think of it as a visual example. Your PAN card is your financial identity. If this identity is erased, you will lose access to your years of hard work and savings. While this ₹1,000 fine may seem harsh today, the loss after your PAN becomes inactive will be much greater.

What is required for linking?
To link your PAN and Aadhaar, you must have these three things:

Your valid PAN number.

Your Aadhaar number.

A working mobile number (for OTP verification).

An easy way to link online
Step 1: First, go to the Income Tax e-Filing website (e-Filing Portal). Click on 'Link Aadhaar' in the 'Quick Links' section.

Step 2: Enter your PAN and Aadhaar number.

Step 3: You will then be prompted to make the payment through 'e-Pay Tax'. Click 'Continue'.

Step 4: Re-enter your PAN number and verify it with an OTP by entering your mobile number.

Step 5: After verification, click 'Proceed'. Here, you will need to select 'Assessment Year' and 'Other Receipts' as the payment type.

Step 6: Pay the prescribed fee (which will automatically appear in the 'Others' column).

Step 7: After the payment is successful, log in to the portal again and go to the profile section, and click on 'Link Aadhaar'.

Step 8: Enter your Aadhaar number and click the 'Validate' button. Your request will be sent to the bank and UIDAI for verification.

Why is it important?
The main purpose of linking PAN and Aadhaar is to prevent fake PAN cards and curb tax evasion. If you don't do it on time, your PAN card will become inoperative. This means you won't be able to use it wherever a PAN card is mandatory (such as for transactions above ₹50,000).

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