How to Link PAN with Aadhaar: Step-by-Step Guide & Consequences of Not Linking

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September 15, 2025

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Linking your Permanent Account Number (PAN) with your Aadhaar is no longer just a best practice. It’s a legal requirement for most Indian residents. The Central Board of Direct Taxes (CBDT) has made Aadhaar – PAN link mandatory to streamline tax administration and curb duplication of PAN cards.

Without linking, your PAN can become inoperative, making every day financial tasks—like filing income tax returns, opening new bank accounts, or investing in other investment instruments difficult or even impossible.

This guide walks you through everything you need to know, including why the government insists on PAN–Aadhaar linking, the documents you’ll need, and every method available to link the two—online, via SMS, or through an authorised service centre. Let’s dive in!

Why PAN and Aadhaar Linking Is Mandatory?

The Indian government introduced PAN–Aadhaar linking to create a single, verifiable financial identity for each taxpayer. Here’s why it matters:

Prevents Tax Evasion: Linking helps detect individuals holding multiple PANs to hide income or avoid taxes.
Streamlines e-filing: Aadhaar authentication makes filing income tax returns easier and faster, reducing paperwork and fraud.
Mandatory Under Law: Section 139AA of the Income Tax Act requires every PAN holder to quote Aadhaar in their returns, unless exempt.

Current Deadlines & Penalties to link PAN with Aadhaar

Deadlines: The government has extended the PAN-Aadhaar linking deadline multiple times. As per the latest CBDT notification (April 2025), the current final deadline is December 31, 2025 – specifically for individuals who were allotted a PAN on or before October 1, 2024 (using an Aadhaar enrolment ID). These PAN holders can inform/link their Aadhaar by 31 Dec 2025 without any additional penalty during this window. After this free window, linking will incur a late fee of ₹1,000.
Penalty for Missing the Deadline: If you fail to link your PAN by the due date, your PAN is deemed inoperative. If your PAN is inoperative, your return won’t be processed, and refunds won’t be issued until PAN becomes operative; higher TDS/TCS may apply.

Important: As per CBDT’s April 2025 notification, the 31 Dec 2025 date applies only to PANs allotted using an Aadhaar enrolment ID on or before 1 Oct 2024. Others who missed earlier deadlines already have PAN marked inoperative; they can still link by paying ₹1,000 (u/s 234H).

Exempt Categories from PAN Aadhaar linking

Residents of Jammu & Kashmir, Assam, and Meghalaya
Non-Resident Indians (NRIs) who don’t have an Aadhaar card
People aged 80 or above
Foreign citizens with PAN

Documents & Prerequisites to link PAN with Aadhaar

Before you start the linking process, keep these ready:

PAN Card – Your 10-digit alphanumeric PAN
Aadhaar Card – Must be active and have the correct name, birth date, and gender.
Mobile Number Linked to Aadhaar – Needed for OTP verification.

Check If Already Linked:

Visit the Income Tax e-filing portal. Go to ‘Visit Quick Links’ and then ‘Link Aadhaar Status’. Enter your PAN and Aadhaar numbers to see if they are already linked.

Important Tip:

Ensure that the name, date of birth, and gender match on both PAN and Aadhaar. Any discrepancy (e.g., spelling differences) should be corrected first—either by updating PAN details through NSDL or Aadhaar details via the UIDAI website.

Step-by-Step Guide on PAN with Aadhaar Linking

You can link your PAN and Aadhaar in several ways. Choose whichever is most convenient:

1.Online Through the Income-Tax e-Filing Portal (Without Login)

Visit the official income tax website.
On the home page, click “Link Aadhaar” under Quick Links.
Enter your PAN, Aadhaar number, name as per Aadhaar, and the mobile number registered with Aadhaar.
Tick the declaration box and click “Link Aadhaar.”
You’ll receive an OTP on your Aadhaar-linked mobile. Enter it to verify.
If a late fee applies (currently ₹1,000), the portal will direct you to “e-Pay Tax” to pay before linking.

2. Linking After Logging In

Log in with your PAN and password.
Go to Profile Settings and then click on Link Aadhaar.
Verify the auto-filled details and complete OTP authentication.

3. Linking by SMS

Use the format: UIDPAN <12-digit Aadhaar> <10-digit PAN>
Send it to 567678 or 56161 from your Aadhaar-registered mobile. Example: UIDPAN 123456789012 ABCDE1234F
You’ll receive a confirmation text when the process succeeds.

4. Offline / Assisted Linking

If internet or smartphone access is limited, visit an authorised PAN Service Centre (NSDL or UTIITSL):
Carry a self-attested copy of your PAN and Aadhaar cards.
The centre will help complete biometric authentication and process the link for a nominal service fee.

Tip: Always check the Link Aadhaar Status page after a day or two to confirm successful linking.

Fee & Deadlines for PAN Aadhaar linking

Current Deadline

As per the latest CBDT notification, PAN–Aadhaar linking remains open but attracts a late fee of ₹1,000 if not done within the original free period.

Payment Process for the Late Fee

Go to incometax.gov.in and click e-Pay Tax.
Select “Proceed” under Income-tax.
Enter your PAN and mobile number.
Choose Assessment Year as the current year and Type of Payment as Other Receipts (500).
Pay ₹1,000 via net banking, debit/credit card, or UPI.
After successful payment, return to the Link Aadhaar page and complete the linking steps.

Processing Time

For most users, linking updates instantly or within a few hours.
If you use offline or SMS methods, it can take up to 7 days to reflect.

Please Note: Linking often reflects within hours, but reactivation can take a few days—up to ~30 days in some cases

What Happens If You Don’t link PAN with Aadhaar?

Failing to link your PAN and Aadhaar has serious consequences:

PAN Becomes Inoperative – Your PAN is treated as invalid until you complete the linkage.
Income Tax Return Issues – If your PAN is inoperative, your return won’t be processed, and refunds won’t be issued until PAN becomes operative; higher TDS/TCS may apply
Banking & Investments Halt – Opening new bank accounts, investing in mutual funds, buying or selling property above specified limits, or making high-value transactions all require a valid PAN.
Penalties & Delays – Using an inoperative PAN can attract a penalty of up to ₹10,000 under Section 272B of the Income Tax Act. But this penalty will be applicable only when the mistake is intentional. If the mistake is genuine and unintentional, then there will be no penalty.
If you miss the deadline, you can still link later by paying the prescribed late fee (currently ₹1,000). Once the fee is paid and the linking request is processed, the PAN generally becomes active again within a few days.

Troubleshooting & Special Cases of PAN–Aadhaar Linking

Even with a simple process, a few situations can cause hiccups:

Name or Date Mismatch

Update PAN details through NSDL if the discrepancy is in your PAN
Update Aadhaar details on UIDAI if the error is on Aadhaar
Ensure that the corrected data is updated before retrying the link

Lost Credentials

Forgot PAN? Retrieve it using the “Know Your PAN” option on the e-filing portal.
Forgot Aadhaar? Retrieve it from the UIDAI site using your registered mobile.

NRI or OCI Status

NRIs are generally exempt from mandatory linking if they are not required to file income tax returns in India
Still, they can link voluntarily if they maintain investments or property in India.

Unregistered Mobile with Aadhaar

Visit the nearest Aadhaar Seva Kendra to update or link your mobile number before attempting PAN–Aadhaar linking.

Final Thoughts

Completing your PAN with Aadhaar linking is more than a box to tick; it’s an investment in your own financial security. By linking the two, you create a single, verifiable identity that makes tax filing seamless and protects you from penalties and disruptions in essential services like banking, investments, and property transactions.

A valid PAN is fundamental for everything from applying for loans to filing ITR. Once linked, your PAN remains permanently active as long as the number itself doesn’t change.

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