New Delhi: As the Finance Ministry, while passing the Finance Bill, 2021, inserted a new section (Section 234H) into the Income Tax Act, 1961, which now requires everyone to link their PAN with the Aadhaar card by March 31, 2021 to avoid getting penalised.
Under this new Section 139AA, the income tax department has made it mandatory for everyone to quote the Aadhaar number in their income tax return and the application for the allotment of PAN, provided they are eligible for Aadhaar. And failing to do so, they could be penalised for up to ₹1,000 while their PAN will also become invalid.
Step-1: Go to the income tax department’s e-filing portal.
Step-2: Click on the Link Aadhaar section on the left.
Step-3: You need to fill PAN number, Aadhaar number and name.
Step-4: Fill in the CAPTCHA.
Step-5: Click at the ‘Link Aadhaar’ option and your PAN-Aadhaar Linking will get complete.
The I-T department will validate your name, date of birth and gender against your Aadhaar card details after which the linking will be done.
It is to be mentioned that having a PAN card is mandatory for several purposes like for opening a bank account, buying mutual funds or shares and even making cash transactions above ₹50,000.