Link PAN with Aadhaar before May 31, informs IT dept 

28 May 2024

The Income Tax department has asked taxpayers to link PAN with Aadhaar by 31^st May to avoid tax deductions at a higher rate. “Please link your PAN with your Aadhaar before May 31^st, 2024, if you haven’t already, in order to avoid tax deduction at a higher rate”, posted the department on X today. This action is necessary as linking PAN to Aadhaar before the deadline ensures you are safe from facing higher tax deductions under Section 206AA and 206CC of the Income Tax Act, 1961.

In a separate post, the department also asked reporting entities such as banks, forex dealers, sub-registrar, NBFC, post offices, mutual fund trustees, companies paying dividends or buying back shares, etc to file SFT by the same date to avoid penalties. These institutions are supposed to keep a record of the details of certain financial transactions or any reportable account registered/maintained by them during the year and furnish the same when required. Any delay in filing SFT returns will face a penalty of up to Rs 1,000 for each day of default.

Taxpayers who miss the deadline may face financial repercussions as they will be subject to higher tax deductions and collections as per Sections 206AA and 206CC of the Income Tax Act, 1961.

SFT or a statement of financial transactions monitors the high-value transactions done by the taxpayer during the financial year. The Income Tax Act requires reporting entities to deliver the SFT by 31^st May to avoid penalties.  

Here are steps to link your Pan Card With Aadhar: 

1. Visit official website of Income Tax Department incometaxindiaefiling.gov.in
2. Go to ‘Quick Links’ section and select the ‘Link Aadhaar’ option
3. Enter your PAN and Aadhaar number and now click on ‘Validate’ button
4. Enter your name and mobile number and click on ‘Link Aadhaar’ button
5. Enter OTP sent to your mobile number and click on ‘Validate’ button to complete the process

Easy process to check PAN and Aadhaar linkage status ?

1. Go to the official website: https://www.incometax.gov.in/iec/foportal/
2. Select ‘Link Aadhaar Status’ option under ‘Quick Links’ section
3. Enter your PAN and Aadhaar numbers
4. Click on ‘View Link Aadhaar Status’ button and you will be able to see the status