The Income Tax department is urging taxpayers to link their Permanent Account Number (PAN) with the Aadhaar Card before December 31, 2024. Failing to do so will result in the deactivation of the PAN card, which might lead to transaction issues and other complications. 

This move comes amid a rise in financial fraud cases, as several fintech firms were reportedly using PAN information to create customer profiles without user authorisation, raising serious concerns. So, to prevent the misuse of personal information, the Ministry of Home Affairs directed the Income Tax Department to limit access to personal details via PAN. 

The I-T department has made linking of PAN with the Aadhaar Card mandatory for all the taxpayers of India. Failing to link the two before the deadline will render your PAN Cards inoperative. This can lead to several issues, including difficulty in carrying out financial transactions. 

Steps to check PAN-Aadhaar link status

Step 1. Visit the Income Tax e-filing portal at www.incometax.gov.in.

Step 2. On the homepage, click on the ‘Quick Links’ option. 

Step 3. Click on Link Aadhaar status and provide your PAN and Aadhaar Card numbers on the new page. 

Step 4. If your PAN and Aadhaar are already linked, in that case a message will pop up – “Your PAN is already linked to given Aadhaar”. 

Step 5. If not done, then the pop-up will read, “PAN not linked with Aadhaar. Please click on ‘Link Aadhaar’ visible under the Quick Links section of the website’s left-hand side. You’ll be directed to a page where you are supposed to file in details including your PAN and Aadhaar details and also your name as per the Aadhaar Card.

The Income Tax department has a dedicated FAQ page regarding the procedure to link PAN with Aadhaar to help taxpayers.

Non-residents and foreign companies opening bank accounts in IFSC Gift City will not have to furnish PAN and can instead file a declaration.

The non-resident or the foreign company opening a bank account at the International Financial Services Centres (IFSC) will have to file a declaration in Form 60 and should not have any tax liabilities in India.

The Finance Ministry has amended Income Tax Rules exempting non-residents opening a bank account from the requirement of submitting PAN.

Gujarat International Finance Tec-City (GIFT)-IFSC is being promoted as a tax-neutral enclave for the financial sector.

Nangia Andersen LLP Partner – Financial Services, Sunil Gidwani, said this relaxation would make it easy for foreign companies, NRIs and other non-residents to open a bank account with an IFSC bank.

“It will boost the liability/deposits side as well as the retail business segment of a bank in IFSC,” Mr. Gidwani said.