In today’s digital age, Aadhaar and PAN cards are not just identity cards, but have become your financial identity. If your PAN card is not linked to Aadhaar, not only could your PAN become inoperative, but you could also lose access to many important banking and income tax-related functions. The Indian government has given you one last chance to link it for free until December 31st, after which you could face a hefty fine. In this article, we’ll explain how you can complete this task from home with just an SMS and the serious challenges you could face if you don’t link it.
Why is PAN-Aadhaar Linking Mandatory
The Income Tax Department has made it mandatory to link your PAN and Aadhaar to prevent tax evasion and increase transparency. If your Aadhaar was created before October 1, 2024, and you fall under the income tax bracket, linking should be a top priority. Through linking, the government ensures that a person has only one active PAN card, thereby curbing financial fraud.
Link PAN and Aadhaar without internet, just by SMS
If you don’t have a smartphone or don’t want to navigate the online portal, you can do this by sending a simple message from your registered mobile number. Go to your phone’s message box and type in capital letters: UIDPAN <12-digit Aadhaar number> <10-digit PAN number>. Make sure to leave a space between the Aadhaar and PAN numbers. Send this prepared message to 567678 or 56161. If your Aadhaar number is ‘987654321012’ and your PAN is ‘ABCDE1234F’, you need to type: UIDPAN 987654321012 ABCDE1234F. Shortly after submitting, you will receive a confirmation message regarding the linking status.
Who is exempt and who is required to do so
The linking rules do not apply equally to everyone. The government has excluded certain categories. If you are a resident of Jammu and Kashmir, Assam, or Meghalaya, you are exempt. Furthermore, it is not mandatory for senior citizens over 80 years of age, individuals who are not Indian citizens, or those who do not file an ITR. However, if you file income tax, you are strictly bound to complete this process by December 31st.
Losses will be incurred if you do not link your PAN-Aadhaar
If you miss the December 31st deadline, it will have a profound impact on your financial health. According to tax experts and ClearTax, you may face the following problems. First, you will face significant difficulties in getting your ITR refund, and filing your return next year will also become difficult. Additionally, very high TDS and TCS rates (up to 20%) will be levied on your transactions.
Regarding banking services, opening a new bank account or obtaining a new debit or credit card will become impossible. Cash transactions will also be strictly restricted. You will not be able to deposit more than ₹50,000 in a day at a bank or post office, and more than ₹2.5 lakh in a financial year. Furthermore, even normal transactions exceeding ₹10,000 at any bank will experience technical disruptions.