Month: March 2025

Filing income tax returns can sometimes lead to a refund if you’ve paid more tax than required. If you are expecting a refund, it’s essential to check income tax refund status to track its progress and ensure timely receipt. The Income Tax Department allows taxpayers to monitor their refund status online through various platforms like the e-Filing portal, NSDL, and TRACES.

This blog will explain what an income tax refund is, how to apply for it, and how to check income tax refund status using different methods. We will also cover different refund statuses, their meanings, and how to apply for a reissue.

What is Income Tax Refund?

An income tax refund occurs when the Income Tax Department returns the excess tax you have paid during a financial year. This happens when your total tax deductions, such as TDS or advance tax, exceed your actual tax liability. After filing and verifying your income tax return (ITR), the department processes the refund and credits it to your registered bank account.

This typically happens in the following situations:

• Excess Tax Deducted at Source (TDS) by your employer or bank.
• Advance tax payments exceeding the final tax liability.
• Deductions or exemptions claimed while filing ITR, reducing the taxable income.

Let’s understand this with the help of an example:

Suppose your employer deducted ₹50,000 as TDS from your salary, but after calculating your taxable income and applicable deductions, your actual tax liability is only ₹40,000. Since you have paid ₹10,000 more than required, you can claim a refund by filing your ITR.

Once the Income Tax Department verifies and processes your return, they will refund the extra ₹10,000 to your bank account.

Who Can Claim an Income Tax Refund?

Taxpayers can claim a refund if they have paid excess tax during a financial year. The following individuals and entities are eligible:

• Salaried employees
• Self-employed individuals and freelancers
• NRIs (Non-Resident Indians)
• Businesses and firms
• Senior citizens
• Investors and traders

How to Apply for Income Tax Refund

To apply for an income tax refund, you need to file your ITR correctly and ensure that all tax payments are accurately reported. The Income Tax Department processes refunds only after verifying your return.

Follow these steps to claim your refund:

1. File your income tax return (ITR):

Submit your ITR on the Income Tax e-Filing portal before the due date, using the correct form based on your income type.

Visit income tax return filing to learn about the types of ITR forms and their due dates.

2. Claim excess tax paid:

While filing your ITR, declare the total tax paid, including TDS, advance tax, or self-assessment tax. The system will automatically calculate the refund if you have overpaid.

3. Verify your ITR:

Complete the verification process using Aadhaar OTP and net banking. The Income Tax Department processes refunds only after successful verification.

4. Wait for processing:

After verification, the department reviews your ITR and approves the refund if everything is accurate. You can track your refund status online.

5. Receive the refund:

Once approved, the Income Tax Department credits the refund directly to your registered bank account via NEFT or RTGS.

How to Check Income Tax Refund Status

After filing your Income Tax Return (ITR), you can check your income tax refund status through three platforms: the e-Filing portal, NSDL, and TRACES.

Here’s how you can do it:

Check Income Tax Refund Status on the Income Tax e-Filing portal:

1. Visit the Income Tax e-Filing portal.
2. Log in using your PAN, password, and captcha code.
3. Go to ‘My Account’ > ‘Refund/Demand Status’.
4. The portal will display your refund status, including approval, processing, or failure details.

Check Income Tax Refund status on NSDL (TIN-NSDL Portal):

1. Visit the NSDL Refund Status page.
2. Enter your PAN and select the relevant assessment year.
3. Click on ‘Proceed’ to view your refund status.
4. The NSDL portal provides real-time updates on refund dispatch and any failures due to incorrect bank details.

Check Income Tax Refund Status on TRACES:

1. Visit the TRACES portal.
2. Log in using your PAN, password, and captcha.
3. Navigate to ‘Statements/Forms’ > ‘View Tax Credit (Form 26AS)’.
4. Form 26AS shows the refund details, including the amount and payment status.

Each platform offers different insights into your refund status. If your refund has been delayed or failed, you may need to update your bank details or contact the Income Tax Department for resolution.

Different Status Meanings of ITR Refund

When you check your refund status, you may come across different messages. Here’s what they mean:

• Refund Issued: Your refund has been processed and credited to your bank account.
• Refund Processed but Not Credited: Refund was initiated, but there may be an issue with your bank account details.
• Refund Failed: The refund could not be credited due to incorrect bank details.
• Refund Adjusted Against Outstanding Demand: Your refund has been adjusted against any previous tax dues.
• Refund Under Process: The refund is still being processed by the IT Department.
• No Refund Due: Your tax calculations do not show any refundable amount.

How to Apply for Income Tax Refund Reissue

If your refund was not credited due to incorrect bank details or other issues, you can request a reissue:

1. Log in to the Income Tax e-Filing Portal.
2. Click on ‘My Account’ > ‘Service Request’.
3. Select ‘New Request’ and choose ‘Refund Reissue’.
4. Update your bank details (if required) and submit the request.
5. The IT Department will reprocess your refund.

Income Tax Refund for NRIs (Non-Resident Indians)

NRIs (Non-Resident Indians) who have paid excess tax in India can claim a refund by filing an Income Tax Return (ITR). The process is similar to that for resident taxpayers, but NRIs must follow specific guidelines regarding taxation and refunds.

NRIs can claim a tax refund if:

• TDS deducted on their income (salary, rental income, capital gains, interest, etc.) exceeds their actual tax liability.
• They qualify for benefits under the Double Taxation Avoidance Agreement (DTAA) between India and their country of residence.
• They have made excess advance tax payments.

Important Points for NRIs:

• DTAA Benefits: If NRIs have paid tax in both India and their resident country, they can claim relief under DTAA by submitting Form 10F and a Tax Residency Certificate (TRC).
• TDS Refunds: If TDS was deducted at a higher rate (e.g., 30%), NRIs can claim a refund by filing ITR and showing eligible deductions under the Income Tax Act.
• PAN-Aadhaar Linking: NRIs who hold an Indian PAN but do not have an Aadhaar must update their residential status to avoid issues.

NRIs should file their returns correctly and claim applicable deductions to maximize their refunds. They should also ensure they have an active Indian bank account to receive the refund seamlessly.

How to Rectify Errors in Filed ITR to Claim Refund

Taxpayers must correct errors in their filed ITR to ensure a smooth refund process. The Income Tax Department allows rectifications through the following methods:

• File a revised return: Submit a revised ITR under Section 139(5) if you made mistakes in the original return.
• Submit a rectification request: Use Section 154 to correct errors like incorrect tax computation or mismatch in TDS details.
• Verify the updated return: Complete the verification process through Aadhaar OTP, net banking, or by sending a signed physical copy to CPC Bengaluru.
• Check Form 26AS and AIS: Match your tax details with Form 26AS and Annual Information Statement (AIS) to ensure accuracy.
• Contact the Income Tax Department: Raise a grievance on the e-Filing portal or call the helpline if the issue persists.

Rectifying errors promptly helps taxpayers avoid refund delays and ensures accurate tax filings.

Conclusion

Checking your income tax refund status is simple and can be done through multiple platforms like the e-Filing portal, NSDL, and TRACES. Understanding the refund status messages and applying for a reissue if needed ensures a smooth refund process. Always verify your ITR and update correct bank details to avoid refund delays.

EasetoCompliance offers expert guidance in tax filing, refund claims, and compliance-related assistance. We help taxpayers file income tax returns, rectify errors, and ensure smooth refund processing, making tax compliance simple and stress-free.

Contact us today for expert assistance in ITR filing, tax refunds, and other compliance services.

When making payments to non-residents, individuals and businesses in India must comply with certain tax regulations. Two key forms required for reporting such payments are Form 15CA and 15CB. These forms help the government track foreign remittances and ensure proper tax deduction at source (TDS) under the Income Tax Act, 1961.

This article will help you understand what Form 15CA and 15CB are, when they apply, and how to file them. Whether you’re an individual, a business owner, or a financial professional, this guide will ensure you stay compliant with tax laws while making foreign remittances.

What is Form 15CA and 15CB?

When making foreign payments from India, you must comply with tax regulations set by the Income Tax Department. Forms 15CA and 15CB play a crucial role in tracking these transactions and ensuring the correct tax deduction.

Form 15CA is a declaration submitted by the remitter before making an international payment, while Form 15CB is a certificate issued by a Chartered Accountant (CA) confirming the tax details of the transaction.

Let’s understand both forms in detail.

What is Form 15CA?

Form 15CA is a declaration by the remitter (payer) regarding the remittance made to a non-resident. It helps the Income Tax Department track foreign transactions and ensures that tax is deducted correctly before funds are sent abroad.

Banks require Form 15CA before processing the remittance to ensure compliance with tax regulations. You must file Form 15CA in different parts depending on the amount of remittance and taxability.

Key Points:

• It is an online form submitted on the Income Tax e-filing portal.
• It applies to any payment to a non-resident that may be taxable in India.
• It is filed before the remittance is made.

What is Form 15CB?

Form 15CB is a certificate issued by a Chartered Accountant (CA), confirming that the tax deduction and payment details are in compliance with Indian tax laws. It ensures that remittances follow the provisions of Double Taxation Avoidance Agreements (DTAA) and the Income Tax Act.

When you make an international payment exceeding Rs. 5 lakh in a financial year, you must obtain this certificate from a Chartered Accountant (CA) before filing Form 15CA. If your remittance is Rs. 5 lakh or less, you do not need Form 15CB.

Key Points:

• It is required only for certain high-value or taxable foreign remittances.
• It certifies the nature of payment, taxability, and rate of TDS.
• It is issued before submitting Form 15CA (when applicable).

Applicability of Form 15CA

Banks and authorized dealers will not process the remittance unless you submit Form 15CA, if required. Form 15CA is applicable when:

• If the remittance is taxable in India: You must submit Form 15CA before sending payments to a non-resident.
• If the remittance exceeds Rs. 5 lakh: You must also obtain Form 15CB from a Chartered Accountant before filing Form 15CA.
• If the remittance falls under specified categories requiring disclosure: Certain payments require tax deduction at source (TDS), even if below Rs. 5 lakh.
• If the remittance does not fall under the RBI’s exempted list: Some remittances (e.g., payments for travel, education, or medical treatment) do not require Form 15CA.

Applicability of Form 15CB

You must obtain Form 15CB when making a foreign remittance that exceeds Rs. 5 lakh in a financial year and is taxable in India. Form 15CB is applicable when:

• If your remittance exceeds Rs. 5 lakh in a financial year: You must get a CA to certify tax details before filing Part C of Form 15CA.
• If the payment is taxable in India: The CA verifies the applicable TDS rate, nature of remittance, and DTAA provisions.
• If the bank or authorized dealer requires tax certification: Banks will not process certain foreign payments unless a CA certifies that you have met tax obligations.

Details Required for Filing Form 15CA

When filing Form 15CA, you must provide accurate details about the remitter, remittee, and transaction to ensure compliance with tax regulations.

1. Remitter’s Details

• Name, PAN, and Address – Identify the person or entity making the remittance.
• Email ID and Mobile Number – Receive filing confirmations and updates.
• Status (Individual, Company, Firm, etc.) – Specify the remitter’s category.

2. Remittee’s Details

• Name, Address, and Country – Identify the foreign recipient.
• PAN (If Available) – Required if the remittee’s country has a Double Taxation Avoidance Agreement (DTAA) with India.

3. Transaction and Payment Details

• Amount and Currency – Mention the exact remittance amount and foreign currency.
• Nature and Purpose of Remittance – Specify the reason for the payment.
• Bank Details of the Remittee – Provide the account number, SWIFT code, and bank name.

4. Tax Deduction Details (If Applicable)

• TDS Rate and Amount Deducted – Declare the tax deducted at source, if any.
• Section of the Income Tax Act – Mention the applicable tax provision.
• Form 15CB Acknowledgment Number – If required, enter the number after the CA submits Form 15CB.

By submitting accurate details, you ensure smooth processing of your foreign remittance while complying with Income Tax and RBI guidelines.

Details Required for Filing Form 15CB

The CA verifies the transaction details and ensures compliance with Income Tax Act and Double Taxation Avoidance Agreements (DTAA), if applicable.

1. Remitter’s Details

• Name, PAN, and Address – Identify the person or entity sending the remittance.
• Email ID and Mobile Number – Receive filing confirmations.
• Status (Individual, Company, Firm, etc.) – Specify the remitter’s category.

2. Remittee’s Details

• Name, Address, and Country – Identify the foreign recipient.
• PAN (If Available) – Required if the remittee’s country has a DTAA with India.
• Bank Details of the Remittee – Include the account number, SWIFT code, and bank name.

3. Transaction and Payment Details

• Amount and Currency – Mention the exact remittance amount and foreign currency.
• Nature and Purpose of Remittance – Specify the reason for the payment.
• Foreign Exchange Rate – Provide the conversion rate used for the transaction.

4. Tax Deduction and Certification Details

• TDS Rate and Amount Deducted – Mention the applicable tax rate and deduction.
• Relevant Section of the Income Tax Act – Specify the tax provision governing the transaction.
• DTAA Provisions (If Applicable) – Confirm whether the remittance benefits from a lower TDS rate under a tax treaty.
• Bank Name and BSR Code of the Tax Depository – Identify the bank where TDS has been deposited.

After the CA files Form 15CB, you must use the acknowledgment number to submit Form 15CA and complete the remittance process.

Procedure to File Form 15CA and 15CB

To file Form 15CA and Form 15CB, you must first obtain Form 15CB (if applicable) from a Chartered Accountant and then submit Form 15CA online through the Income Tax e-filing portal. The process involves gathering required details, uploading documents, and verifying the submission.

Steps to file Form 15CA:

• Log in to the Income Tax e-filing portal using your remitter credentials.
• Go to e-File > Income Tax Forms > File Income Tax Forms.
• Select Form 15CA and choose the applicable Part (A, B, C, or D) based on remittance details.
• Enter the required details:
  • Remitter’s and remittee’s PAN details.
  • Remittance purpose and amount.
  • TDS deduction details (if applicable).
  • Form 15CB acknowledgment number (if applicable).
• Upload necessary documents (mentioned above) and submit the form.
• Verify the submission using Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
• Download the acknowledgment for future reference.

Once the process is complete, submit the acknowledgment to the bank or authorized dealer, which will then process the remittance as per RBI guidelines.

Steps to File Form 15CB:

You don’t need to file Form 15CB yourself; a Chartered Accountant (CA) will prepare and submit it on your behalf before you proceed with Form 15CA.

• Hire a Chartered Accountant (CA).
• Provide necessary details (mentioned above) for verification.
• The CA will generate and upload Form 15CB on the e-filing portal.
• Once approved, use it to file Form 15CA (if required).

Parts of Form 15CA

Form 15CA consists of four parts, and you must select the appropriate part based on the remittance amount and taxability.

1. Part A – If the remittance amount does not exceed Rs. 5 lakh in a financial year and is taxable in India, you must file Part A before making the payment.
2. Part B – If the remittance amount exceeds Rs. 5 lakh, and you have obtained a certificate under Section 197 or an order under Section 195(2)/(3) for lower or nil TDS, you must file Part B.
3. Part C – If the remittance amount exceeds Rs. 5 lakh, and you do not have a lower TDS certificate, you must first obtain Form 15CB from a Chartered Accountant (CA) and then file Part C.
4. Part D – If the remittance is not taxable in India, you must file Part D to confirm that no tax is required to be deducted.

By selecting the correct part, you ensure compliance with Income Tax and RBI regulations, allowing smooth processing of your foreign remittance.

Penalties for Non-Compliance with Form 15CA and Form 15CB

Failing to file Form 15CA and 15CB correctly can lead to penalties under the Income Tax Act, 1961:

• Failure to file Form 15CA: Penalty of Rs. 1 lakh under Section 271I.
• Not obtaining Form 15CB (if required): Possible interest on unpaid TDS and scrutiny.
• Incorrect information in forms: Penalty of Rs. 1 lakh per incorrect filing.
• Non-deduction or late deduction of TDS: Interest at 1% or 1.5% per month under Section 201(1A).

Conclusion

Form 15CA and 15CB play a crucial role in ensuring tax compliance for foreign remittances. While Form 15CA is mandatory in most cases, Form 15CB is required for taxable or high-value transactions. Understanding their applicability and filing procedures can help avoid penalties and ensure smooth international transactions.

EasetoCompliance provide end-to-end compliance services, including tax filings, regulatory documentation, and foreign remittance compliance. Our team of experienced Chartered Accountants ensures accurate filing, verifies tax deductions, and helps you comply with Income Tax and RBI regulations.

Contact us today to get expert assistance with foreign remittances and tax compliance.

Frequently Asked Questions (FAQs)

Q1. What is the difference between Form 15CA and Form 15CB?

Form 15CA is a self-declaration by the remitter to confirm tax compliance before making a foreign remittance. Form 15CB is a certificate issued by a Chartered Accountant (CA), verifying the taxability of the remittance.

Q2. What are the legal provisions related to Form 15CA and Form 15CB?

• Form 15CA is governed by Section 195 of the Income Tax Act, 1961, which deals with TDS on payments to non-residents.
• Form 15CB is issued under Rule 37BB of the Income Tax Rules, requiring a CA to verify the taxability of the remittance.

Q3. When is Form 15CA not required?

You don’t need Form 15CA if:

• The remittance falls under the specified list of exempted transactions in Rule 37BB.
• The payment is made to government authorities, embassies, or international organizations.
• The transaction is not taxable in India under the Income Tax Act.

Filing an Income Tax Return (ITR) is a crucial responsibility for every taxpayer in India. Whether you are a salaried individual, self-employed professional, business owner, or part of an organization, filing taxes ensures compliance with the Income Tax Department and helps you claim refunds, reduce tax liability through deductions, and avoid penalties. This article provides a step-by-step process on how to register on income tax portal and essential information for taxpayers.

Why Register on the Income Tax Portal?

The Income Tax e-Filing Portal is the official digital platform provided by the Income Tax Department of India for taxpayers to file their Income Tax Returns (ITR) and manage various tax-related activities. Registering on this portal is a mandatory step if you have taxable income or need to claim a refund. It eliminates the need for physical paperwork, ensuring a smooth and hassle-free tax filing experience.

Key Benefits of Registering on the Income Tax Portal

• Mandatory for ITR Filing: The primary reason to register is to file your Income Tax Return (ITR) online.
  • The government has made e-filing mandatory for most taxpayers except for individuals whose income is below the basic exemption limit.
  • Filing your ITR on time ensures compliance with tax laws and helps avoid penalties.
• Quick & Convenient Tax Filing: Once registered, taxpayers can file their ITR online from anywhere.
  • The portal provides a user-friendly interface where individuals and businesses can submit their income details, claim deductions, and pay any outstanding taxes.
  • It also allows users to pre-fill certain information, reducing the chances of errors while filing.
• Track Income Tax Refund Status: If you have paid excess tax, you are eligible for a tax refund.
  • After filing your ITR, you can track the status of your refund directly on the portal.
  • This eliminates the need to visit tax offices or rely on third-party intermediaries. The portal provides real-time updates on the processing of your refund.
• View & Download Important Tax-Related Documents: Once registered, taxpayers gain access to various important documents, including:
  • Annual Information Statement (AIS) – Provides a detailed record of your financial transactions.
  • Form 16 & Form 16A – Issued by employers and deductors for salaried and non-salaried TDS.
  • Challans & Receipts – Proof of advance tax and self-assessment tax payments.

These documents help ensure accuracy while filing returns and maintaining compliance with tax regulations.

• Mandatory for Business Entities & NRIs:
  • If you run a business, GST-registered entity, LLP, or private limited company, you must register on the Income Tax Portal for corporate tax compliance.
  • NRIs (Non-Resident Indians) earning income in India also need to register for tax filing and compliance purposes.

Who Should Register on the Income Tax Portal?

Registration is mandatory for the following categories of taxpayers:

1. Salaried Individuals

• If your annual income exceeds the basic exemption limit (₹2.5 lakh for individuals below 60 years).
• If your employer deducts TDS, or you need to claim refunds/deductions.

2. Self-Employed Professionals & Freelancers

• Consultants, freelancers, and professionals earning above the taxable threshold.
• Those required to pay advance tax or claim business-related deductions.

3. Business Owners & Entrepreneurs

• Proprietors, LLPs, and companies filing business tax returns.
• Businesses with turnover above ₹1 crore (₹50 lakh for professionals).

4. NRIs & Foreign Investors

• NRIs earning rental income, dividends, capital gains, or interest in India.
• Foreign investors/entities needing tax compliance in India.

5. Individuals with Capital Gains & Investments

• Those earning from stock trading, mutual funds, crypto, or property sales.
• Investors receiving dividends, interest, or high-value financial transactions.

Documents Required for Registering on the Income Tax Portal

To register on the Income Tax e-Filing Portal, you need the following documents:

Personal Identification Documents

• PAN Card – Mandatory for all taxpayers.
• Aadhaar Card – Required for individual taxpayers (except NRIs).
• Date of Birth Proof – As mentioned in PAN/Aadhaar.

Contact and Address Details

• Mobile Number and Email ID – Required for OTP verification.
• Current Address – As per Aadhaar or official documents.

Bank Account Details

• Bank Account Number and IFSC Code – Needed for tax refunds.
• Pre-validated Bank Account – Required for e-verification of ITR.

Business and Professional Documents (For Non-Individuals)

• Business PAN Card – Required for proprietors, firms, LLPs, and companies.
• Registration Certificate – For businesses and companies.
• GSTIN (if applicable) – For GST-registered businesses.

Digital Signature Certificate (DSC) (If required)

• Mandatory for companies and LLPs filing ITR.
• Class 2 or Class 3 DSC issued by a registered certifying authority.

Having these documents ready ensures a smooth registration process on the Income Tax Portal.

How to Register on Income Tax Portal

Registering on the Income Tax e-Filing Portal is essential for filing returns, paying taxes, and tracking refunds. Follow these steps to complete the registration process smoothly.

Steps to Register on the Income Tax Portal

1. Visit the Official Portal

Go to the Income Tax e-Filing Portal.

2. Click on “Register”

On the homepage, click the “Register” button in the top-right corner.

3. Select User Type

Choose your applicable category:

• Individual
• Hindu Undivided Family (HUF)
• Company
• Firm/LLP
• Trust/Association of Persons (AOP)
• Other taxpayers

Click “Continue” after selecting the user type.

4. Enter PAN and Personal Details

• Enter your PAN (Permanent Account Number).
• Provide your name, date of birth, and contact details as per your PAN and Aadhaar.
• Click “Validate” to verify your details.

5. Provide Contact Information

• Enter your mobile number and email ID.
• Select primary mobile and email ID for future communications.

6. Verify with OTP

• You will receive an OTP (One-Time Password) on your registered mobile number and email.
• Enter the OTPs to proceed.

7. Create Login Credentials

• Set a User ID (PAN will be the default User ID for individuals).
• Create a strong password (must include uppercase, lowercase, numbers, and special characters).
• Set a security question for account recovery.

8. Confirm and Submit

• Review the details entered.
• Click “Submit” to complete the registration.

9. Login to Your Account

• After successful registration, log in using your PAN/User ID and password.
• Set up a personalized dashboard to manage ITR filing, tax payments, and compliance.

Once registered, you can file income tax returns, track refunds, pay taxes, and access tax-related services seamlessly.

How to Log in to Your Income Tax Account?

Once your account is created, follow these steps to log in:

1. Visit Income Tax e-Filing Portal.

2. Click on “Login” in the top right corner.

3. Enter your User ID (PAN) and click Continue.

4. Enter your password and the captcha code.

5. Click “Login” to access your account dashboard.

How to Register on Income Tax Portal: Post-Registration Activities

After successfully registering on the Income Tax e-Filing Portal, there are a few important steps to complete. Ensuring these activities are completed will make your tax compliance process smooth and efficient.

Follow these essential steps:

1. Link Aadhaar with PAN

• Log in to your account.

• Go to Profile Settings > Link Aadhaar.

• Enter Aadhaar details and submit the request.

2. Update Profile Information

• Navigate to Profile Settings.

• Update your address, contact details, and bank account information.

3. Check Form 26AS (Tax Credit Statement)

• Download Form 26AS to verify TDS (Tax Deducted at Source) details.

4. Enable e-Verification

• Set up e-verification using Aadhaar OTP, Net Banking, or Digital Signature Certificate (DSC) for easy tax filing.

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Conclusion

Registering on the Income Tax e-Filing Portal is the first step toward seamless tax compliance. Whether you are a salaried individual, a freelancer, a business owner, or an NRI, having an account on the portal ensures easy tax filing, refund tracking, and compliance with government regulations. By following the registration steps carefully and keeping the required documents ready, you can complete the process without hassle.

Don’t let tax season stress you out. Register on the Income Tax Portal today and let EasetoCompliance handle your tax filing needs effortlessly. Our experts provide professional assistance to ensure accurate and timely ITR filing, helping you avoid penalties and maximize your refunds.

Frequently Asked Questions (FAQs)

Q1. Do businesses and companies have a different registration process?

Businesses, firms, LLPs, and companies need to select their entity type while registering. They may also need to provide additional details like GSTIN, business PAN, and Digital Signature Certificate (DSC).

Q2. Is registration required every year for ITR filing?

No, registration is a one-time process. Once registered, you can log in and file your ITR every year using the same credentials.

Q3. How can I update my profile information after registration?

You can log into your account and go to ‘My Profile’ to update details such as contact information, address, and bank details.

Q4. Is there a fee for registering on the Income Tax e-Filing Portal?

No, registration on the portal is completely free of cost.

The Indian government has made it mandatory for everybody to link Aadhaar card with PAN card. It helps in curbing tax fraud, ensuring transparency in financial transactions, and making it easier for individuals to file their income tax returns. If you haven’t linked your Aadhaar with PAN yet, you may face penalties, and your PAN may become inactive.

In this article, we will provide a detailed, step-by-step guide on how to link Aadhaar card with PAN card using different methods.

What is Aadhaar and PAN?

Before learning how to link Aadhaar with PAN, let’s first understand what these two essential documents are and why they matter.

Aadhaar serves as a unique identification number for Indian residents, helping verify identity and access government services. PAN, on the other hand, is crucial for financial transactions and tax filing.

Understanding their significance will help you see why linking them is necessary.

What is an Aadhaar Card?

An Aadhaar card is a unique identification document issued by the Unique Identification Authority of India (UIDAI). It serves as proof of identity and address for Indian residents. The government assigns a 12-digit unique identification number to each individual based on their biometric and demographic details.

Key Features of Aadhaar Card:

• Unique identification: Each Aadhaar number is unique to an individual and cannot be duplicated.
• Biometric and demographic data: It stores fingerprints, iris scans, and personal details like name, date of birth, and address.
• Government benefits: Aadhaar enables individuals to access subsidies, welfare schemes, and government services.
• Digital verification: It allows seamless e-KYC verification for banking, mobile connections, and financial transactions.
• Mandatory for tax and banking: Aadhaar is essential for linking with PAN, opening bank accounts, and filing income tax returns.

By issuing Aadhaar, the government ensures transparency, eliminates fraud, and simplifies identity verification across various sectors.

What is a PAN Card?

A PAN (Permanent Account Number) card is a government-issued identification card assigned by the Income Tax Department of India. It consists of a 10-character alphanumeric code that uniquely identifies individuals, businesses, and entities for tax-related purposes.

Key Features of a PAN Card:

• Unique identification: Each PAN is unique and remains valid for a lifetime.
• Essential for taxation: The government uses PAN to track financial transactions and prevent tax evasion.
• Mandatory for financial activities: It is required for filing income tax returns, opening bank accounts, investing in securities, and high-value transactions.
• Universal usage: Both individuals and businesses, including foreign entities operating in India, must have a PAN for financial dealings.
• Prevention of duplicate IDs: PAN helps eliminate the possibility of multiple tax identities under different names.

By issuing PAN cards, the government ensures tax compliance, financial transparency, and accountability in monetary transactions.

If you don’t have a PAN card yet, you can easily apply for one. Check out our step-by-step guide on how to apply for a PAN Card.

Why is Linking Aadhaar with PAN Mandatory?

The government has made it compulsory to link Aadhaar card with PAN card for the following reasons:

• Prevention of duplicate PANs: Some individuals were found using multiple PAN cards to evade taxes. Linking Aadhaar helps eliminate duplicate PANs.
• Mandatory for filing ITR: Without linking Aadhaar and PAN, individuals cannot file their income tax returns.
• Financial transparency: This initiative helps the government track financial transactions and prevent fraud.
• Avoiding penalties: Non-compliance may result in a penalty of ₹1,000, and your PAN could become inactive.

Link Aadhaar card with PAN

The government has provided multiple methods to link Aadhaar with PAN to ensure convenience for all individuals. Whether you prefer an online, SMS-based, or offline method, you can complete the process easily.

You can link your Aadhaar with PAN using three different methods:

1. Online through the Income Tax e-Filing Portal (Recommended)
2. Offline at a PAN service center
3. Via SMS

Below, we’ll go through each method in detail.

How to Link Aadhaar card with PAN Online

The fastest and most convenient way to link Aadhaar with PAN is through the Income Tax e-Filing portal. This method is ideal for individuals who have internet access and want an immediate confirmation of their Aadhaar-PAN linking status.

Steps to Link Aadhaar with PAN Online:

1. Visit the official Portal: Go to the Income Tax e-Filing Portal.
2. Click on ‘Link Aadhaar’: Under the ‘Quick Links’ section, select the ‘Link Aadhaar’ option.
3. Enter Details: Provide your PAN number, Aadhaar number, and name as per Aadhaar.
4. Verify Captcha/OTP: Enter the captcha code (or OTP for visually impaired users).
5. Submit the Request: Click on ‘Link Aadhaar’, and if all details match, the system will confirm the successful linking.
6. Pay Late Fee (If Applicable): If linking is done after the government’s deadline, a late fee of ₹1,000 must be paid through the ‘e-Pay Tax’ section on the portal before proceeding.

Advantages of Online Linking:

• Instant confirmation of linking.
• No need to visit any office.
• Secure and government-verified method.

How to Link Aadhaar card with PAN Offline

Individuals who prefer in-person assistance or face technical issues with online linking can visit a nearest PAN service center to complete the linking process.

Steps to Link Aadhaar with PAN Offline:

1. Visit a nearby PAN Service Center or an authorized TIN-Facilitation Center.
2. Request the Aadhaar-PAN Seeding Form and fill in your details correctly.
3. Provide self-attested photocopies of your Aadhaar card and PAN card.
4. Submit the form along with the necessary processing fee.
5. After submission, the officials will verify your details and process the linking request.

You will receive a confirmation message once Aadhaar and PAN are successfully linked. This method may take up to 10 working days for processing.

Advantages of Offline Linking:

• Useful for individuals who do not use online services.
• Direct support from officials to resolve any issues.

How to Link Aadhaar card with PAN via SMS

For individuals who do not have access to the internet, the government has introduced an SMS-based Aadhaar-PAN linking method.

Steps to Link Aadhaar with PAN via SMS:

1. Open your phone’s messaging app.
2. Type the following message: UIDPAN <Aadhaar Number> <PAN Number>
3. Send the message to 567678 or 56161 from your registered mobile number.

You will receive a confirmation message once your Aadhaar and PAN are successfully linked. This method only works if your Aadhaar is linked to your mobile number, as OTP verification may be required.

Advantages of SMS Linking:

• Quick and easy process.
• No internet required.
• Can be done from any mobile phone.

How to Pay the Aadhaar-PAN Linking Fees

To link Aadhaar with PAN, you must first pay the fee online through the ‘e-Pay Tax’ portal on the Income Tax website.

Follow these steps:

1. Visit the e-Filing Portal

1. Go to the Income Tax e-Filing Portal.
2. Click on ‘e-Pay Tax’ under the ‘Quick Links’ section.

2. Log in and Select the Payment Option

1. Enter your PAN number and captcha code to proceed.
2. Click on ‘Proceed’ and select ‘Income Tax’ as the payment category.

3. Select Assessment Year & Payment Type

1. Choose ‘Assessment Year 2024-25’ (or the current year).
2. Select ‘Other Receipts (500)’ as the payment type.

4. Pay the Fee

1. Enter ₹1,000 as the amount.
2. Choose a payment method (Net Banking, Debit Card, UPI, or Credit Card).
3. Complete the payment and save the receipt for reference.

5. Link Aadhaar with PAN

Once payment is successful, wait 24 hours before proceeding to link your Aadhaar with PAN through the e-Filing portal.

How to Check PAN-Aadhaar Link Status

If you have linked your Aadhaar with PAN or recently submitted a request, you can check the linking status online. The Income Tax Department provides a simple way to verify whether your Aadhaar and PAN are successfully linked.

Follow these steps to check PAN-Aadhaar link status:

1. Visit the Official Portal: Go to the Income Tax e-Filing Portal.
2. Click on ‘Link Aadhaar Status’: Under the ‘Quick Links’ section, click on ‘Link Aadhaar Status’.
3. Enter PAN and Aadhaar Number: Provide your PAN number and Aadhaar number in the required fields.
4. Submit and View Status: Click on ‘View Link Aadhaar Status’ to check if your Aadhaar is linked with PAN.

Consequences of Not Linking Aadhaar with PAN

Failing to link Aadhaar with PAN can lead to several financial and legal consequences. The government enforces this rule to ensure tax compliance and prevent fraudulent activities.

Failing to link Aadhaar with PAN leads to:

• PAN Deactivation – Your PAN becomes inoperative.
• Banking Restrictions – Banks reject high-value transactions.
• Higher TDS/TCS – Tax deductions increase.
• ITR Filing Issues – You cannot file income tax returns.
• Investment Barriers – Stock and mutual fund investments become impossible.
• Loan and Credit Card Rejections – Banks deny loan applications.
• Property & Vehicle Registration Issues – High-value purchases face restrictions.
• GST and Business Problems – Business tax compliance gets affected.
• Forex and Travel Issues – Foreign currency transactions become difficult.
• Late Fee & Penalties – You must pay ₹1,000 and may face further fines.

Exemptions: Who Does Not Need to Link Aadhaar card with PAN

Certain individuals are exempt from linking Aadhaar with PAN:

• Non-Resident Indians (NRIs).
• Foreign nationals with PAN.
• Residents of Assam, Meghalaya, and Jammu and Kashmir.
• Individuals above 80 years.

Conclusion

Linking your Aadhaar with PAN is a simple yet crucial process to ensure hassle-free financial transactions and tax compliance. Follow the steps outlined in this guide to complete the process online, via SMS, or offline. If you face any issues, refer to the troubleshooting tips or visit the official Income Tax portal for support.

Don’t delay and link your Aadhaar card with PAN card today to avoid penalties and stay compliant with government regulations.

EasetoCompliance ensures a hassle-free legal and tax compliance process. Contact us today for expert assistance!

Frequently Asked Questions (FAQs)

Q1. How to check PAN-Aadhaar link status via SMS?

You can check the status via SMS by sending UIDPAN <Aadhaar> <PAN> to 567678 or 56161.

Q2. Can I still link my Aadhaar with PAN after the deadline?

Yes, but you must pay a penalty of ₹1,000 before linking through the Income Tax e-Filing portal.

Q3. How long does it take for Aadhaar-PAN linking to reflect?

After submitting the request, it may take 2-7 days for the linking to be processed and updated in the system.