PAN-Aadhaar Linking : As the government of India continues to strengthen its digital identity framework, PAN-Aadhaar linking has become a critical requirement for taxpayers. Recently, the deadline to link your PAN (Permanent Account Number) with Aadhaar has been extended yet again, providing relief to many. But if you haven’t completed the process yet, this might be your final opportunity.
In this guide, we’ll break down everything you need to know – from the new deadline to step-by-step instructions, benefits, consequences of missing the deadline, and answers to common questions.
PAN-Aadhaar Linking : Why is PAN-Aadhaar Linking Mandatory?
The linking of PAN with Aadhaar is a government initiative aimed at curbing tax evasion and duplicate PANs. It also simplifies the filing of income tax returns and enhances transparency in the financial system.
The Income Tax Department has made it clear that PAN cards not linked with Aadhaar will be deemed inoperative, which can create serious problems for taxpayers.
Latest Deadline to Link PAN with Aadhaar
The Central Board of Direct Taxes (CBDT) has extended the deadline for PAN-Aadhaar linking multiple times. Here’s the updated information:
- Previous Deadline: March 31, 2024
- Extended Deadline: June 30, 2025
Taxpayers now have until June 30, 2025, to link their PAN with Aadhaar without facing penalties or inoperative PAN cards.
Important Notes:
- A fee of Rs 1,000 is applicable for linking PAN with Aadhaar after March 31, 2022.
- The linking is mandatory for all individuals except NRIs, residents of Assam, Meghalaya, and Jammu & Kashmir, and those above 80 years of age.
Step-by-Step Guide to Link PAN with Aadhaar
You can link your PAN and Aadhaar through different methods – online, via SMS, or using offline centers. Here’s how to do it:
Online via the Income Tax e-Filing Portal:
- Visit the official Income Tax e-Filing portal: https://www.incometax.gov.in
- Click on “Link Aadhaar” under the “Quick Links” section.
- Enter your PAN, Aadhaar Number, Name as per Aadhaar, and Mobile Number.
- Tick the consent checkbox and click on “Link Aadhaar.”
- Enter the OTP received on your registered mobile number to complete the process.
Via SMS:
- Send an SMS to 567678 or 56161 in the format:
UIDPAN<space><12-digit Aadhaar><space><10-digit PAN>
Offline Method:
- Visit the nearest PAN Service Centre (NSDL or UTIITSL).
- Fill out the Aadhaar linking form.
- Submit a self-attested copy of your PAN and Aadhaar card.
- Pay the applicable fee and submit the form.
See More : Major Changes in Savings Accounts
Who is Exempted from PAN-Aadhaar Linking?
Some individuals are not required to link their PAN and Aadhaar. These include:
- Non-Resident Indians (NRIs)
- Residents of Jammu & Kashmir, Meghalaya, and Assam
- Senior citizens aged 80 years and above
- Individuals not eligible to get an Aadhaar number
Exempted Categories – Table Format
| Category | Exemption Status | Documents Required | Notes |
|---|---|---|---|
| NRIs | Exempt | Passport with Visa | Should not have resided in India |
| Assam, Meghalaya, J&K Residents | Exempt | Aadhaar (if available) | Based on Aadhaar Act provisions |
| Senior Citizens (80+) | Exempt | Age Proof | Must be above 80 years as on PAN issuance |
| Foreign Nationals | Exempt | Passport | Not eligible for Aadhaar |
| Individuals with Aadhaar issues | May be conditionally exempt | Proof of application | Subject to Aadhaar availability |
| PAN holders outside India | Exempt | Overseas residence proof | Based on ITD circulars |
| Individuals without income | Not exempt | Not Applicable | Must still link PAN and Aadhaar |
Consequences of Not Linking PAN and Aadhaar
Failing to link your PAN with Aadhaar can lead to several consequences, both financial and procedural. Here’s what can happen if you miss the deadline:
- PAN becomes inoperative.
- Cannot file Income Tax Returns (ITR).
- Pending ITRs will not be processed.
- TDS and TCS deductions will attract a higher rate (20%).
- Cannot carry out high-value transactions.
- Ineligibility for various government schemes and services.
PAN Inoperative Impact – Comparison Table
| Activity | Allowed if PAN is Active | Allowed if PAN is Inoperative |
|---|---|---|
| Filing ITR | Yes | No |
| Receiving Tax Refunds | Yes | No |
| TDS Deduction at Lower Rates | Yes | No (Higher Rate Applied) |
| Investing in Mutual Funds | Yes | No |
| Opening a Bank Account | Yes | No |
| Selling or Buying Property | Yes | No |
| Accessing Govt. Schemes | Yes | No |
Common Errors While Linking and How to Fix Them
Sometimes, users encounter errors while linking PAN with Aadhaar. These can be due to data mismatches or incorrect information.
Common Errors:
- Name mismatch between PAN and Aadhaar
- Date of birth mismatch
- Aadhaar not linked to a valid mobile number
- Technical server errors on the e-filing portal
Fixing the Issues:
- For Name or DOB Mismatch: Update details on either Aadhaar (via UIDAI portal) or PAN (via NSDL/UTIITSL).
- For Mobile Number Issues: Update your mobile number with Aadhaar at an Aadhaar Enrollment Centre.
- Technical Issues: Try during non-peak hours or contact the Income Tax helpline.
FAQs on PAN-Aadhaar Linking
Is it mandatory to pay Rs. 1,000 for linking?
Yes, after March 31, 2022, a penalty of Rs. 1,000 is applicable for late linking.
Can I still use my PAN after the deadline if it’s not linked?
No, your PAN will become inoperative and will not be valid for any financial transactions.
Is Aadhaar linking required for NRIs?
No, NRIs are exempt from this requirement.
How long does it take for PAN-Aadhaar linking confirmation?
Usually, it is confirmed within a few days, but in some cases, it might take longer.
Can I de-link PAN from Aadhaar?
No, once linked, the PAN-Aadhaar linkage is permanent and cannot be reversed.
Linking your PAN with Aadhaar is not just a government mandate, but also a step towards ensuring financial accountability and easier compliance. With the deadline now extended to June 30, 2025, make sure you complete the process well in advance to avoid last-minute hassles and penalties.
Don’t wait for the last day – link your PAN with Aadhaar now and stay compliant with India’s tax regulations.
