Thursday, May 4, 2017

Procedure for linking of Aadhar with PAN on Income Tax E-Filing Website

Now it is mandatory to mention Aadhar Number on Income Tax return for Asst Year 2017-18. The linking of  aadhar with PAN on the Income Tax E – Filing Website is mandatory for all PAN  holders before 30.06.2017. From 01.07.2017 all PANs without linked aadhar number of the assessee or Aadhar number of Authorised person ( in case of Corporate, AOP, HUFs and others) will be deactivated.
Here is the procedure to link aadhar with PAN and to solve error or mismatch messages received while linking of the both i.e PAN and Aadhar.
Mandatory to quote Aadhar  In Income Tax Returns:
Applicability:  W.e.f. 1st July, 2017 , it is mandatory  to quote  valid  Aadhar No. in  Income Tax Return filed by a person.  Further,  Aadhar must be linked with PAN  of the assessee. This provision is introduced by Govt. to put a check on persons evading  taxes by obtaining  multiple PAN.
However, If a valid Aadhar no. is linked with PAN of assessee then quoting Aadhar in ITR is not mandatory.
Further, Aadhar no. must also be quoted on application for PAN by a person.
This provision in Finance Act 2017-18 requires that every person holding a valid PAN & who is eligible to obtain Adhaar must obtain & quote the same in his/her Income Tax returns.
Thus, Aadhar no. of a person must be linked with the PAN of the assessee otherwise following consequences shall follow:
a)      The person shall not be able to file his/her Income Tax Return.
b)     The person shall be deducted TDS @ 20% since the PAN shall be invalid unless it is linked with Aadhar.
Further Finance Bill 2017-18 has introduced provisions  that provide for levy of Penalty for late filing of return for an amount of INR 5,000 if return is filed after due date but before 31st December  of the relevant Asst. Year.
Information Required for linking Aadhar with PAN.
Only a Valid 12 digit Aadhar no. is required for linking Aadhar with PAN.
Procedure for linking Aadhar with PAN.
Step 1: Log in to Income Tax E-filing portal of Income Tax Dept by entering the Log In ID, Password & Date of Birth.
Step 2: Pop Up Window for linking Aadhar with PAN: On logging in  to the site, a pop up window will appear, prompting you to link your PAN card with Aadhar Card.
Step 3: Verification of details registered with the dept.: Verify the details mentioned on screen with the ones mentioned on your Aadhar Card.
Step 4: If details match, enter your Aadhar Card no. & click on the "link now" button. Thereafter, a pop up message will inform you that your Aadhar card has been successfully linked to your  PAN Card.
Step 5: Checking status of Aadhar linking with PAN,  log in to E-filing website, go to Profile Settings > Click on ‘Link Aadhaar’ to view Aadhaar linking status of Karta/Principal contact Person.
Whose Aadhar is to be linked in case of  Corporate/Partnership or HUF assessee?
Aadhar of Karta in case of HUF & principle officer  in case of company/HUF shall be linked as only they are the competent persons to verify returns/ statements  under Income Tax Act,1961. 
No delinking of Aadhar no. with PAN in E-Filing website.
Once a valid Aadhar is linked with E-filing website, there is no option to delink Aadhar with E-filing website.
Rooting out the problem of multiple PAN Cards to stop tax evasion
Problem:  Various entities apply for more than one PAN cards which enables them to use one of the PAN for paying taxes on a certain set of financial transactions & pay taxes applicable for those. However, other cards can be used for concealing other financial transactions on which entity wants to avoid tax.
Government's View Point:  Linking of Aadhar with PAN will enable the government to link identity of an individual with the PAN since Aadhar contains the Biometric details of an individual, thereby providing the details of all the transactions made via PAN linked with Aadhar. Further, Government will get to know whether , more than one  PAN have been obtained by a person & take corrective action against the same.
E verification of Return & No need to send ITR-V to Bangalore: Assesses who have linked their Aadhar with Pan will no longer be required to send their ITR acknowledgement to IT dept Bangalore as they can E-verify the return  using Aadhar provided their mobile no. is registered with Aadhar.
Procedure to be followed & options available for E-Verification of return.
For the purpose of verification through EVC, one has to first generate EVC. EVC can be generated by using any of the following options as per their respective eligibility criteria.
However, these options are available only when :
a.       Taxable income of taxpayer is less than 5 lakhs  and                                                                                     
b.       Refund/ Demand is less than or equal to INR 100 and
c.       Mobile no. & E-Mail ID is unique in E-filing Portal.
Generation of EVC Through Net Banking.
S. No.
Options to Generate EVC
Through Net Banking
Through Bank Account Number – Few banks only
 Through DEMAT Account No.

I. EVC Through Net Banking
a.       Click on "EVC-Through Net Banking".
b.       Log into E-filing through Net Banking.
c.       Click on the link E-Verify the Return that has been uploaded.
d.       Thereafter your return will be verified & no further action will be needed.
II. EVC Through Bank Account No.
1. This option can be used only if your bank account no. has been prevalidated. To prevalidate your Bank Account, go to Profile Settings Menu-> Select " Pre Validate your Bank Account".
2. A dialogue box appears. Enter Bank name, Bank Account No., IFSC Code, Mobile No, E-mail ID etc & click on prevalidate.
3. A dialogue box appears whether you want to generate EVC. Select Yes & EVC shall be generated.
4. EVC so generated shall be sent to mobile no. registered with Bank.
5. Enter the EVC for E-verification of return
3.EVC Through DEMAT Account no.

III. EVC Through DEMAT follows similar procedure as in case of Bank Account.  
Banks providing the EVC Facility.
Currently, only 10 Banks are providing the facility of EVC generation.
These 10 Banks are:
1. Punjab National Bank
2. State Bank of India
3. Union Bank of India
4. Andhra Bank
5.Kotak Mahindra Bank
6. Saraswat Bank
7. Canara Bank
8. HDFC Bank
9. ICICI Bank
10. Syndicate Bank
EVC shall be generated only when details as registered with Income Tax E-Filing Portal are confirmed by Bank.

Benefits of E-verification of return through linking Aadhar of authorized person in case of Corporate /HUF assesses.
·         First, the Principle contact details of the HUF/Non-Corporate will have to be updated with the correct signatory PAN on E-Filing website  by following the steps given below:
·         Login with HUF/Non-Corporate login credentials. Click on ‘Profile Settings’ > My Profile> Update Principle Contact> enter the new Principle Contact PAN and contact details.
·         To e-verify the HUF/Non-corporate returns, the PAN of the Karta/Principle contact has to be linked to their Aadhaar in the individual capacity.
Error Messages encountered during linking of Aadhar with PAN.
1. Please enter a valid Aadhar no.: This could be on account of an invalid Aadhaar number. You may please contact UIDAI Helpdesk 1800-300-1947 for updating AADHAAR CARD database & related queries.
 2. Name, Date of Birth, Gender in PAN database does not match with Aadhar Database: This error occurs when information regarding Name, DOB, Gender or PAN registered with Income Tax dept does not match with information  registered in Aadhar database.
·         To update Aadhaar details, please contact 1800-300-1947 or 1800-180-1947 or visit UIDAI at "" &
·         To update PAN details, you are requested to contact NSDL at 020-27218080 or visit

2(a) Procedure  to Update inforamation other than mobile no. registered in Aadhar :
After logging in the Aadhar website, one has to enter his/her Aadhar no., then a OTP shall be sent to the person on his registered mobile no. After entering the OTP in the required field, the person will be able to update his Adhaar details such as Name, Gender, DOB, Address & E-mail etc.
After the details has been successfully update in Aadhar, one can easily link his/her PAN with Aadhar easily.  
2(b) Personal visit to UIDAI Centres for updation to a person's Mobile No.
ü  NO, Mobile no. of an individual cannot be updated ONLINE as almost all online transactions    are authenticated with an OTP sent to registered mobile no.
ü  If a person does not possess the mobile number as registered in Aadhar Database or there           is any change in Mobile number then the person concerned has to visit the UIDAI updation    Centre personally & get the same updated by filling a 1 page form.
ü  The  personnel at these updation centres may ask you INR 100. However, these charges are not mandatory to pay. This amount is charged for providing you a plastic Aadhar Card. You may opt for a paper Aadhar without lamination & save on INR 100.
 Enquiry regarding  Aadhar  updation can be made on Phone number                 18003001947 &          E-Mail :
2(c) Status of Aadhar Updation Request:
Once the changes as desired by you have been processed, you will receive a message on your registered mobile no. stating that your request have been processed successfully.
Or you can check the status of your request by entering the update request no. in Aadhar website.
Contributed by Tanveer Alam at Sandeep Ahuja & Co