Link Aadhaar and Pan Card by June 30, 2022 to Avoid Penalty
The recent announcement by the Central Board of Direct Taxes (CBDT) stated that the last day to link PAN with Aadhaar was originally by March 31, 2022, however card holders can link these two by June 30, 2022 with a late fee of INR 500. For any linking that happens after July 1, 2022, the fine will go up toINR 1,000 and the PAN card will be active only for 1 financial year, i.e., till March 2023 or FY2022–23. These non-linked PANs can only be used for filing ITR, refund claims, and other IT filings for that 1-year.
How to Link PAN with Aadhaar
Step 1 — PAN and Aadhaar can be linked online by visiting the Income Tax site
https://www.incometax.gov.in/iec/foportal and accessed through quick links and selecting the option of ‘Link Aadhaar’.
Step 2 — Provide PAN card details, Aadhaar number, and name as mentioned on the Aadhaar card to link the two numbers.
Step 3 — Fill in all the requested details including name, date of birth, phone number, etc, agree to the terms and conditions and click on ‘Link Aadhaar’.
Step 4 — Type the Captcha Code and an OTP will be sent to your registered mobile number for validation.
Step 5 — Step 5 — Click on ‘Link Aadhaar’ to complete the process.
What are Benefits of Linking PAN with Aadhaar?
- It facilitates seamless tax filing process and connects all accounts together, which minimises the risk of double taxation or tax evasion.
- It reduces the chances of individuals holding multiple PAN cards.
- Individuals are exempt from providing any proof of the tax return fillings for any financial year after the linking is done.
- Linking of PAN with Aadhaar helps prevent the PAN from getting cancelled.
- By linking Aadhaar and PAN, individuals will get the benefit of creating a tax payment history and retaining it for reference in the future.
Lending Can be Simplified by Linking PAN to Aadhaar
While availing for any type of MSME loans, small business entrepreneurs have to submit KYC documents and PAN is the most preferred document for that process. By linking PAN and Aadhaar, MSMEs can show it as proof for KYC, as well as evidence of past tax filings. This can help MSME entrepreneurs to get loan approvals quicker. This will also provide more information to the lenders like banks and NBFCs to process the application faster in their systems.
Kinara Capital, an RBI registered Systemically Important NBFC in India, provides collateral-free business loans to MSME entrepreneurs in the country. Some of the important documents to avail of a business loan from Kinara Capital are listed below:
- Applicant’s KYC document (PAN card)
- Co-applicant’s KYC document (PAN and Aadhaar are recommended, but not mandatory)
- Business KYC document (Udyam registration, etc.)
- Last 12 months’ bank statements
- GST and ITR documents are optional
Hence, by linking PAN and Aadhaar, you can avail of easy and fast business loans from Kinara Capital, and you can start by checking your eligibility in just 1 minute on the myKinara app now!
So don’t miss the deadline to link your PAN with Aadhaar. Get it done before June 30, 2022 to avoid a penalty and the risk of your PAN being cancelled.
Originally published at https://www.kinaracapital.com on June 14, 2022.