It is mandatory to link Aadhaar number with PAN card from July 1, however, there is no need to panic as it is not the last date, as rumoured. The confusion regarding the deadline has caused a mad rush to link the PAN and Aadhaar, which even resulted in the crash of the Income Tax website several times on Friday.
However, the circular by CBEC makes linking mandatory from July 1 and before July 1. If you are not able to link it before July 1, your PAN will not become invalid automatically. After July 1, the linking will become mandatory and the government may declare a date after which the PAN not linked to Aadhaar will become invalid. The government has not declared that date yet.
Section 139AA, Income-tax Act says: "Every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to such authority in such form and manner as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette: Provided that in case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be deemed to be invalid and the other provisions of this Act shall apply, as if the person had not applied for allotment of permanent account number."
The notification clearly says that Aadhaar and PAN have to be linked "on or before" the date to be notified by the Central government.
Here is how to link Aadhar with PAN card:
Visit www.incometaxindiaefiling.gov.in and click on the link on the left pane: Link Aadhaar. Provide the PAN and Aadhaar numbers, enter your name exactly as given in the Aadhaar card press enter. You will get a confirmation message that your two documents have been linked.
Alternatively, you can link Aadhaar number and PAN through SMS. To do so, send an SMS from your registered mobile number to 567678 or 56161 in the following format.
UIDPAN<12 digit Aadhaar><10 digit PAN>
Example: UIDPAN 123456789012 ABCDE1234F
In case of different name/spelling on Aadhar and PAN
In the case of any minor mismatch in the provided name with that of the actual data in the UIDAI database, an Aadhaar OTP (One Time Password) will be sent to your registered mobile number. However, the date of birth and gender in PAN and Aadhaar should exactly be the same.
But if names are completely different then you must visit National Securities Depository Ltd (NSDL) website and UIDAI (AAdhaar) portal to change the name in one of the documents.
In case of no Aadhar card
Supreme Court, in this case, has provided relief to people who do not have Aadhar at the moment. "Only a partial relief by the court has been given to those who do not have Aadhaar and who do not wish to obtain Aadhaar for the time being, that their PAN will not be cancelled so that other consequences under the I-T Act for filing to quote PAN may not arise," said CBDT in its circular.
Note: The court does not provide any relief to those who already have both PAN and Aadhaar. You will have to link both.