Link PAN-Aadhaar to avoid restrictions on NPS A/C: Step-by-step guide here

PAN-Aadhaar link: The deadline to link PAN and Aadhaar cards was extended to June 30 on March 28. The earlier deadline was March 31

The Central Board of Direct Taxes (CBDT) has fixed June 30 as the last date to link PAN and Aadhaar cards. In a circular, the Pension Fund Regulatory and Development Authority (PRFDA) stated that if this is not done by the deadline, one's National Pension Scheme (NPS) transactions will be restricted.

The deadline to link PAN and Aadhaar cards was extended to June 30 on March 28. The earlier deadline was March 31. The last date has been pushed by the CBDT five times in a row till now.

"In continuation to our earlier advisory dated March 23, 2023, on the captioned subject, the date for linking PAN with Aadhaar has been extended till June 30, 2023, in accordance with CBDT press release dated March 28, 2023," the PFRDA's circular issued earlier this month said.

In another circular dated March 23, the pension body said that all concerned intermediaries are required to ensure valid KYC for all the NPS subscribers.

"All existing subscribers are also required to ensure linking of their PAN with their Aadhaar number prior to June 30, 2023, for continual and smooth transactions and to avoid consequences of non-compliance with the said CBDT circular, as such NPS accounts would be considered non-KYC compliant, and there could be restrictions on NPS transactions until the PAN and Aadhaar are linked," it added.

It must be noted that those linking the PAn and Aadhaar cards now must pay a fine of Rs 1,000.

PAN-Aadhaar link check: How to check if your cards are linked or not

1. Visit the official e-filing portal of the Income Tax Department (https://www.incometax.gov.in/iec/foportal/).
2. Click on "Link Aadhaar Status" under the "Quick Links".
3. Enter the PAN and Aadhaar number and click "View Link Aadhaar Status".
4. If your Aadhaar and PAN are not linked, a pop-up menu on the screen will show "PAN not linked with Aadhaar. Please click on the "Link Aadhaar" link to link your Aadhaar with PAN."
5. If the cards are linked, the message will say, "Your Aadhaar is linked with PAN".

PAN-Aadhaar link online: Step-by-step guide here

1. Visit the Income Tax e-Filing portal (incometaxindiaefiling.gov.in).
2. Click on the "Link Aadhaar" option.
3. Enter your PAN, Aadhaar number, and name as per Aadhaar in the relevant fields.
4. Verify the details and submit.
5. Upon successful linking, a confirmation message will be displayed on the screen, and an OTP will be sent to your registered mobile number.

Why has the Centre made PAN-Aadhaar linking necessary?

The main reason behind making the linking of PAN cards and Aadhaar cards mandatory was to reduce the duplication of PAN cards. Multiple PAN cards issued to the same person lead to inaccuracy in calculating and collecting tax. It also makes it difficult for authorities to track tax evasion.

The mandatory linking of the two cards is expected to improve compliance and reduce tax evasion in India.