How to Link PAN with Aadhaar and Why It Is Mandatory in India
Introduction
Linking PAN (Permanent Account Number) with Aadhaar is no longer optional—it is a legal requirement under Indian tax laws. If this linkage is not completed within the prescribed deadline, your PAN can become inoperative, affecting income tax filings, refunds, banking, investments, and other financial transactions.
The Central Board of Direct Taxes (CBDT) has reiterated that PAN–Aadhaar linkage is essential for maintaining a valid PAN status. Recently, a special deadline of December 31, 2025 was announced for individuals who obtained PAN using an Aadhaar enrolment ID instead of a final Aadhaar number.
This article explains why PAN–Aadhaar linking is mandatory, who must comply, what happens if you don’t, and a step-by-step guide to link PAN with Aadhaar.
Why Is PAN–Aadhaar Linking Mandatory?
The government introduced PAN–Aadhaar linking to:
- Prevent duplicate or fake PAN cards
- Strengthen taxpayer identification
- Improve transparency in financial transactions
- Curb tax evasion and benami activities
Under Section 139AA of the Income Tax Act, 1961, Aadhaar is now the primary identity proof for individuals dealing with taxation and high-value financial activities.
Without Aadhaar linkage, PAN loses its operational validity.
Who Must Link PAN with Aadhaar?
You are required to link PAN with Aadhaar if:
- You are an Indian citizen
- You were allotted a PAN on or before July 1, 2017
- You are eligible to obtain an Aadhaar number
- You file income tax returns
- You invest in shares, mutual funds, or other financial instruments
- You undertake high-value transactions (banking, property, securities, etc.)
Special Category (Extended Deadline)
Individuals who:
- Obtained PAN using an Aadhaar enrolment ID
- Received their final Aadhaar number later
must complete linking by December 31, 2025, or their PAN may become inoperative from January 1, 2026.
PAN–Aadhaar Linking Deadlines (Latest Update)
| Category | Deadline | Penalty |
|---|---|---|
| PAN linked using enrolment ID | December 31, 2025 | No penalty (as per current guidance) |
| Other PAN holders who missed earlier deadlines | Already expired | ₹1,000 under Section 234H |
What Happens If You Don’t Link PAN with Aadhaar?
Failure to link PAN with Aadhaar can result in serious financial and compliance consequences:
1. PAN Becomes Inoperative
- You cannot file Income Tax Returns (ITR)
- Refunds will not be processed
- PAN cannot be used for verification
2. Higher TDS/TCS Deduction
- TDS and TCS will be deducted at higher rates
- Applicable under Sections 206AA and 206CC
3. Banking and Investment Restrictions
- Mutual fund transactions may stop
- Demat accounts may be frozen
- New bank accounts may not be opened
4. Form Submission Blocked
- Forms like 15G/15H will not be accepted
5. Refunds Get Stuck
- Tax refunds will not be credited
- Interest on refunds may also not apply
How to Link PAN with Aadhaar (Step-by-Step Guide)
Online Method (Recommended)
- Visit the Income Tax e-Filing portal
- Click on “Link Aadhaar” under Quick Links
- Enter:
- PAN
- Aadhaar number
- Name as per Aadhaar
- Click Validate
- Enter OTP received on Aadhaar-linked mobile number
- If penalty applies:
- Pay ₹1,000 via e-Pay Tax
- Select Minor Head 500
- Submit the request
- Confirmation message will appear
⏳ Status update usually reflects within 3–5 working days.
How to Check PAN–Aadhaar Link Status
- Go to the e-filing portal
- Select “Link Aadhaar Status”
- Enter PAN and Aadhaar number
- View the current linkage status instantly
What If Your PAN Is Already Inoperative?
If your PAN is marked inoperative:
- Visit the Income Tax portal
- Pay ₹1,000 penalty (if applicable)
- Complete PAN–Aadhaar linking
- PAN becomes operative within 30 days
⚠️ Avoid high-value transactions until PAN status is restored.
Offline Method (If Online Linking Fails)
You can also link PAN and Aadhaar by visiting:
- NSDL (Protean eGov) centre
- UTIITSL PAN service centre
Carry:
- PAN card
- Aadhaar card
- Penalty payment receipt (if applicable)
- Biometric verification may be required
Important Points to Remember
- Name, date of birth, and gender must match in PAN and Aadhaar
- Correct mismatches before linking
- Aadhaar must have an active mobile number for OTP
- Regularly check PAN status to avoid last-minute issues
Conclusion
Linking PAN with Aadhaar is no longer a procedural formality—it is essential for maintaining your financial identity. The December 31, 2025 deadline is especially critical for individuals who obtained PAN using an Aadhaar enrolment ID.
An inoperative PAN can disrupt tax filings, block refunds, increase tax deductions, and restrict banking and investment activities. Completing the linkage now ensures uninterrupted financial access and legal compliance.
Don’t delay—verify your PAN–Aadhaar status today and secure your financial future.
PAN–Aadhaar Linking FAQs
Q1. How can I check PAN–Aadhaar link status?
Use the “Link Aadhaar Status” option on the e-filing portal.
Q2. Does the December 2025 deadline apply to everyone?
No, it applies mainly to PANs issued using Aadhaar enrolment IDs.
Q3. Is there a penalty for linking by December 31, 2025?
Currently, no penalty is indicated for this specific category.
Q4. What if PAN and Aadhaar details don’t match?
Update PAN via Protean eGov or Aadhaar via UIDAI before linking.
Q5. Can PAN be reactivated after becoming inoperative?
Yes, by paying the penalty and completing the linkage.
