Aadhar Card
Aadhar Card

The Income Tax department has launched a new e-facility to allow a taxpayer link in "easy" steps one's Aadhaar and Permanent Account Number (PAN), a mandatory requirement for filing IT returns now.

The department's e-filing website--https:// incometaxindiaefiling.gov.in/-- now has a new link on its homepage for connecting the two unique identities of a taxpayer.

The link requires a person to punch in his PAN number, Aadhaar number and the "exact" name as mentioned on the Aadhaar card.

"After verification from the UIDAI (Unique Identification Authority of India), the linking will be confirmed. In case of any minor mismatch in Aadhaar name provided, Aadhaar OTP (one time password) will be required," the department said in its advisory to taxpayers and individuals.

The OTP will be sent on the registered mobile number of the individual as provided in the Aadhaar database.

It urged them to ensure that the date of birth and gender in PAN and Aadhaar are exactly the same, to ensure linking without failure.

"There is no need to log in or be registered on e-filing website (of the I-T department). This facility can be used by anyone to link their Aadhaar with PAN," it said.

In rare cases where the name mentioned on the Aadhaar card is completely different from that on PAN, the linking attempt will fail and the taxpayer will be prompted to change the name in either of the two databases, a statement from the Central Board of Direct Taxes said.

The department introduced the new system after receiving compliants that taxpayers who had used initials in one and full name in the other were not able to link the two unique identities.

Taxpayers are requested to use the simplified process to complete the linking of Aadhaar with PAN immediately. This will be useful for e-verification of income tax returns using OTP sent to their mobile registered with Aadhaar, it said.

The CBDT is the policy making body of the Income Tax department.

The government, under the Finance Act 2017, has made it mandatory for taxpayers to quote Aadhaar or enrolment ID of Aadhaar application form for filing income tax returns (ITR).

Also, Aadhaar has been made mandatory for applying for PAN with effect from July 1, 2017.

The department, till now, has linked over 1.18 crore Aadhaar with its PAN database.

While Aadhaar is issued by the UIDAI to a resident of India, PAN is a ten-digit alphanumeric number issued in the form of a laminated card by the IT department to any person, firm or entity.