Aadhaar is a 12-digit unique identification number issued by the Government of India, while PAN (Permanent Account Number) is a ten-digit alphanumeric code issued by the Income Tax Department.
Linking Aadhaar and PAN is now mandatory to file Income Tax returns, to apply for a new PAN card or to make any changes to the existing PAN details, and to open a bank account.
Linking Aadhaar and PAN helps prevent tax evasion, allows the government to better track financial transactions, and streamlines various processes such as applying for a loan, buying insurance, and more.
The process can be done online through the Income Tax Department website, through SMS, or by visiting a PAN service centre.
To link Aadhaar and PAN through SMS, send an SMS in a specific format to a designated number. The process is quick and easy.
Failure to link Aadhaar and PAN by the deadline can result in the PAN being declared invalid, making it difficult to perform any financial transactions and file Income Tax returns.
The deadline to link Aadhaar and PAN has been extended to 30th June 2023. Failure to link by the deadline can result in penalties and consequences.