PAN Card New Rule: As everyone is aware, each Indian citizen’s Aadhaar card and Permanent Identity Number (PAN) are crucial documents. The Income Tax Department (IT) issues PAN cards, while the Unique Identification Authority of India (UIDAI) issues Aadhaar cards. For tax purposes, both individuals and businesses are assigned a PAN, which is a unique identification number. Each Indian resident is given a unique 12-digit Aadhaar number. However, linking PAN and Aadhaar cards is now required by the IT department.
- According to a notification issued by the Central Board of Direct Taxes (CBDT), if the deductee or collectee passes away before connecting their PAN card with Aadhaar, the higher TCS rates and TDS rates will not be applicable.
- In this context, CBDT issued a notification on August 5, 2024. In the past, taxpayers frequently complained to the Department that the beneficiaries had passed away within a specific time frame.
- In these situations, the tax collector or deductor is unable to connect the deceased person’s Aadhaar card and PAN, which delays tax applications.
PAN Card New Rule: PAN-Aadhaar Linking Is Required
The government has sent out a special alert telling everyone who has a PAN card to link their PAN to Aadhaar right away. The purpose of this action is to prevent fraud and improve financial transparency. The Indian government has implemented significant rules for PAN card holders. The most crucial guideline is to link a PAN to an Aadhaar. The fact that this procedure is now required is important information for anyone who hasn’t completed it yet.
PAN Card’s Significance in Financial Transactions
Required for transactions with substantial sums
- beneficial to banking operations
- Required paperwork for taxpayers
Use in commercial endeavors
- Essential for submitting income tax returns
- Verification of business transactions
- Facilitates access to financial services
Principal Advantages of PAN Card Banking Services
- The ease of depositing or withdrawing more than ₹50,000
- Beneficial for establishing new bank accounts
- Take advantage of different banking services
Benefits of investments and taxes
- The ability to make stock market investments
- Beneficial for TDS refund and deposit
- Essential for submitting income tax returns
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Online Process to link PAN and Aadhaar
Here we are providing the steps to link PAN with Aadhaar. Remember that you have to pay Rs. 1,000 as a fine in order to link your PAN and Aadhaar card.
Step 1: To begin, you must go to the official Income Tax portal at https://www.incometax.gov.in/iec/.
Step 2: Next, under the “Quick Links” tab, you have to choose the “Link Aadhaar” option.
Step 3: Next, you are required to fill in your details, including your PAN, Aadhaar, and name as it appears on your Aadhaar card, as well as a valid mobile number.
Step 4: Click the “Link Aadhaar” option after checking the square box if the birth year is printed on your Aadhaar card and checking the other box if you agree to have your Aadhaar details validated.
Step 5: Your registered mobile number will receive an OTP after you enter the Captcha code.
Step 6: You must then select the “Validate” tab.
