Link Aadhar to Pan Card, All Details That You Need to Know
Link Aadhar card to your pan card before 31st December. As we know, Aadhar card is an essential document for all Indians. For instance, it is not valid proof for a citizen to prove his/her citizenship. However, it is mandatory for all to make and update their relevant name, address, date of birth, and mobile number in it. Similarly, the Permanent Account Number (PAN) is also an essential document. Here, the PAN link with Aadhar is now a mandatory requirement under Indian Tax Laws. Therefore, if you have not linked yet, your PAN may become inoperative, leading to serious disruptions in tax filling, refunds, and financial transactions. The Central Board of Direct Taxes (CBDT) has issued a new directive. For instance, individuals who obtained their PAN using an Aadhar enrollment ID rather than their actual Aadhar number to complete the Aadhar PAN linking by 31st December 2025.
Direct Link to Link Your Aadhar Card to Pan Card (Click here)
Link Aadhar, Why Government Made It Mandatory?
This is according to CBDT guidelines under section 139 AA(2A) of the Income Tax Act. For instance, every individual who has been allotted a PAN as on 1st July 2017 and is eligible to obtain an Aadhar number link the two in the prescribed manner.
- Firstly, Indian citizens who file income tax returns, invest in financial instruments or undertake high- value financial transactions.
- Secondly, for all others failure to complete the Aadhar PAN linking process will result in their PAN becoming inoperative, restricting them from accessing tax and financial services.
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Last Date to Link PAN with Aadhar and Latest Updates
CBDT had set the PAN-Aadhar linkage deadline on June 30, 2023. However, they extended it to 31st May 2024 with a late linking penalty of Rs. 1000. Similarly, the April 3, 2025, notification grants a specific extension for those who obtained PAN using an Aadhar enrollment ID. Therefore, they must now complete the linkage by 31st December 2025 using their final Aadhar number. Individuals who will not be completed their PAN link Aadhar by the deadline 31st December 2025. Their PAN will become inoperative from 1st January 2026. According to tax experts, no penalty will be levied if the linkage is completed within this period.
What problems will be faced if you don’t link PAN with Aadhar?
Individuals who pay tax and investment their funds must complete the PAN link with Aadhar before 31st December 2025.If they will not complete it by the deadline, they must face serious consequences as follows:
PAN Become Inoperative:
In this condition you will not be able to file income tax returns (ITRs) receive tax refunds or carry out any transaction where quoting of PAN is mandatory.
Higher TDS/TCS Deduction:
Under section 206AA and 206CC of the Income Tax Act, if PAN is not furnished or is inoperative, TDS/TCS will be deducted at higher rates.
Disrupted Form Submission:
Submissions like form 15G /15H, necessary for non-deduction of TDS, will not be accepted.
Other than individuals may face the problems like KYC and Service Restrictions, Compliance Penalties, and non- processing of funds:
KYC and Service Restrictions:
Individuals may have to face the service restrictions if they have not completed their PAN linkage with Aadhar, banks mutual funds, and stockbrokers may suspend services such as investments, redemptions, or opening of new accounts due to invalid KYC.
Compliance Penalties:
Reactivating a Pan post-deadline involves payment of Rs. 1,000/- fine and may require additional verification steps.
Non- Processing of Refunds:
Refunds will not be issued for an inoperative PAN, nor will any interest on such refunds likely be paid.
To avoid these disruptions, it is crucial to verify your PAN Aadhar link status and act immediately if linking is still pending.
How to Link Permanent Account Number (PAN) and Aadhar?
Individuals who have not link their PAN and Aadhar yet can complete their linkage process with simple online method provided by The Income Tax Department as follows:
- Firstly, visit the Income Tax e-filling portal.
- Secondly, click on “Link Aadhar” under “Quick Links” (no login required).
- Thirdly, enter your PAN, Aadhar number and name exactly as in Aadhar; click “Validate”.
- Now an OTP will receive your Aadhar registered mobile number, enter it.
- Similarly, if you are linking to post various deadlines, you will need to pay Rs. 1000/- penalty via e-Pay Tax. Choose Minor head “Rs. 500/- fee for delay in linking PAN with Aadhar.
- Now submit the form after payment.
- Lastly, you will get a confirmation message. Status updates on the portal usually take 3-5 working days to reflect.
After submission, you can verify your PAN Aadhar link status on the portal to confirm successful linkage. Now you can ensure that your Aadhar is updated with correct details including your mobile number for OTP-based authentication.
What to Do If Your PAN Is Already Inoperative
If your PAN has already been marked inoperative, don’t panic. You can still reactive it by paying penalty for reactivation by following the steps given below:
- Firstly, visit the Income Tax e-portal.
- Paying the Rs.1000/- penalty through e-pay Tax under Minor Head 500.
- Completing the Pan-Aadhar linking process online.
After completing this process, you will receive a confirmation message, and your PAN Card will be operative again in 30 days. It is important for everyone to check regularly your PAN -Aadhar link status on the portal to stay updated and avoid any inconvenience.
Link Aadhar to Pan Is Mandatory, Do Not Wait for Extension
It is important news for those who have not linked their PAN with Aadhar yet, 31st December 2025 is deadline to complete the same. The PAN holders who received PANs using an Aadhar enrollment ID can complete their linkage PAN with Aadhar via Income Tax e-filling portal by paying Rs. 1000/ penalty fee. Moreover, after 31st December 2025 their PAN will go inoperative if they do not complete linkage by deadline and leading to blocked tax fillings, higher tax deductions, failed refund claims, and disrupted banking and investment activities. Therefore, be active if you are coming into this category to check your PAN Aadhar link status now, complete the linkage process, and avoid any financial penalties or inconveniences.
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