Income Tax Dept shares Aadhaar-PAN linking tutorial to avoid high TDS

PAN-Aadhaar Link: The Income Tax Department has shared a step-by-step guide for linking Aadhaar with a Permanent Account Number (PAN) so that taxpayers can avoid higher tax deducted at source (TDS) rates.

Taking to X, the IT Department said, "Kind Attention Taxpayers! To avail the benefits of CBDT Circular No.6/2024 (related to higher TDS for not linking PAN-Aadhaar) dtd 23rd April, 2024, do not forget to link your PAN with Aadhaar by May 31st, 2024. Don't delay, link today".

How to link PAN with Aadhaar?

To complete this process, taxpayers must have a valid PAN, Aadhaar number, and phone number. Taxpayers should note that they are charged ₹1,000 to link the two documents as the deadline has already passed.

• Visit the e-filing portal- https://www.incometax.gov.in/iec/foportal/
• In the quick links section, click on 'Link Aadhaar'
• Enter your Aadhaar and PAN details
• Click on 'continue' to pay through e-pay tax
• Enter a valid mobile number to receive a one-time password (OTP)
• After OTP verification, you will be redirected to the e-Pay tax page
• Click on 'proceed'
• Choose relevant Assessment Year (AY) and type of payment as' other recipients (500)'
• Click 'continue'
• Following successful payment, visit the 'link Aadhaar' page again
• After payment details are verified, click 'continue' to request PAN-Aadhaar linking

What are the consequences of not linking PAN with Aadhaar?

PAN cards will become inoperative, and users will not be able to use them for financial transactions.

Users will not be able to get any tax refund under the sections of the Income Tax Act. Tax will be deducted at a higher rate. Wherever tax is collected at source, such tax will be collected at an elevated rate.