Linking of Aadhaar to Income Tax Return
You can easily file your Income Tax Return online with the help of Adhaar Card. There is no need to send 1-page verification to Income Tax Department. An Aadhaar based e-verification of the ITR helps you to file ITR easily.
How to link Adhaar to ITR?
Mentioning of Aadhaar number or the Aadhaar enrollment ID on ITR form has become compulsory w.e.f. 1st July 2017.
Follow the below mentioned steps to link Aadhaar and ITR
- Visit the official website http://incometaxindiaefiling.gov.in/
- Log in using your user id and Password.
- Select the option Profile Setting on the home page.
- Go for the option Link Aadhaar.
- Type your Aadhaar details.
- Now select the option Link now.
- Verify the Aadhaar with PAN data.
- In order to finish this process, you need to keep in mind the following points.
If you have an EVC then submit your EVC.
In the absence of EVC, you would like to generate the same.
In case you want to generate Aadhaar OTP to e-verify your ITR.
You want to e-verify later or want to send ITR-V.
How to E-verify your ITR using Aadhaar Card?
E-verification of your ITR is done by generating an Electronic Verification Code. This EVC number is a ten-digit alphanumeric code, send to your registered mobile number. The number identifies the taxpayers of different methods of e-verification.
An Income Tax Asessese needs to e-verify its ITR. This is not valid until the taxpayer verifies it. The department has given the option for verification electronically as well as physically.
Different methods to E-verify your ITR
E-verification of ITR using Aadhaar?
E-verify your ITR using Aadhaar Card. In this, you don’t need to send your 1-page verification document to the Income Tax Department in Banglore.
Steps to E-verify your ITR using Aadhaar
Make sure that you Aadhaar must be linked with the PAN. Otherwise, you need to link Aadhaar and PAN.
- Visit the official website of Income Tax.
- A message pops up on the screen asking you to link your Aadhaar with the e-filing account. In the absence of this message, you can go to the blue tab named Profile Setting on the top bar and click the Link Aadhaar key.
- After checking your PAN details enter your Aadhaar Number. Save these details by clicking the Save button.
- Your Aadhaar will be linked to the PAN after validation.
As your Aadhaar linked to your PAN follow the steps mentioned below.
- First of all, upload the ITR through Income Tax e-Filing website.
- After finishing the first step you will be asked for the mode of verification for your ITR.
- Select the third option that says generate Aadhaar OTP.
- You will receive a password on your registered mobile number with your Aadhaar.
- Keep in mind this OTP is valid only for 10 minutes.
- Enter the OTP on the page and click the Submit button.
- You will receive a message ‘Return successfully e-Verified’. Now download the acknowledgment that will be also sent to your registered email id.
Benefits of linking Aadhaar and PAN
Apart from filing the ITR, there are many benefits of linking PAN and Aadhaar. It helps the government to curb black money. We all know the benefits of PAN and Aadhaar.
Removes the chances of having multiple PAN cards
Having the multiple PAN number was a major source of tax evasion. The multiple cards have been proven a major hurdle in improving tax compliance. Apart from the tax evasion, multiple cards were also used to defraud banks.
Detects Tax Evasion
Linking of Aadhaar with PAN helps the Income Tax Department to establish an efficient surveillance system to detect the tax evasion. The Aadhaar number helps to ensure that the details of the individual are filed properly.
Reduces cash transaction
Linking of Aadhaar with PAN is a positive step towards reducing the cash transactions. That helps to achieve higher economic growth and gives stability to the country.
Stops cancellation of PAN
Once you link your Aadhaar with PAN it avoids the cancellation of your PAN. Linking of Aadhaar PAN is a summarized detail of a tax attached to an individual’s unique identification number for the future purpose.
Why there is a need to link PAN and Aadhaar?
To tighten the grip on the tax evaders the government has introduced a new section 139AA in the Income Tax Act, 1961. By getting multiple PAN numbers people are concealing their income.
The CAG report of 2011 highlighted this issue clearly so the government considered issuing biometric PAN cards to taxpayers across the country to check the duplicate and fake PAN numbers.
The government has tried to find the loophole and find it is not possible to get multiple Aadhaar Number. And the linking of PAN and Aadhaar ensures that one person can hold only one PAN.
Apart from the tax evasion people also get loans from different banks/financial institutions using different PAN. The Aadhaar verified PANs reduce the chances of this malpractice.
Important points to keep in mind while linking Aadhaar and PAN
- For the successful linking, you must ensure that your details on both of the documents are an identical name, gender and date of birth.
- Without linking Aadhaar with PAN number you can file your ITR but the Income Tax Department will process your returns after the linking process.
- The last date of linking Aadhaar and PAN is extended up to 31st March 2019.
- If you are already a user on the e-filing website, there are the chances your PAN and Aadhaar are already linked.
- You can check whether you Aadhaar is linked with PAN by visiting Income Tax e-filing website incometaxindiaefiling.gov.in.
- In case there is a minor mismatch in the PAN and Aadhaar data you can get it corrected before trying to link these numbers.
- Biometric authentication is the must in case there is a major mismatch in data of Aadhaar and PAN.