If you don't link your PAN with Aadhaar, you will face a penalty and encounter problems with your Income Tax Return..
Aadhaar-PAN Linking: If you have a PAN card, this is important information for you. If you haven't linked your PAN card to your Aadhaar card yet, this is your last chance to do so. The Income Tax Department has urged all PAN cardholders to link their PAN to their Aadhaar card immediately.
If you fail to link them by the specified date, your PAN card will become inactive. This will lead to several problems and penalties.
Who will have to pay the penalty?
Taxpayers who have not yet linked their Aadhaar to their Permanent Account Number (PAN) have very little time left to do so. The last date to complete PAN-Aadhaar linking is December 31, 2025, and failure to do so can lead to significant difficulties in tax and financial matters.
The Income Tax Department clarified in a notification dated April 3, 2025, that individuals whose PAN was issued before October 1, 2024, using an Aadhaar number, must complete the linking by the end of this year.
Taxpayers who have not yet completed this process will have to pay a late fee of ₹1,000 before linking. However, PAN holders who obtained their card after October 1, 2024, using their Aadhaar enrollment ID, can link their PAN to Aadhaar without any fee until December 31, 2025.
Why is linking PAN and Aadhaar necessary?
Aadhaar PAN Link: An inactive PAN can prevent taxpayers from filing income tax returns, receiving refunds, and completing transactions where a PAN is mandatory.
This can lead to higher TDS or TCS deductions, rejection of forms like 15G or 15H, and banks, mutual funds, and brokers may suspend services due to KYC issues. Refunds may also remain unpaid.
How to link PAN with Aadhaar
The Income Tax Department also provides an online method to link PAN with Aadhaar. Step 1: Go to the Income Tax e-filing portal. (https://www.incometax.gov.in/iec/foportal/)
Step 2: Click on ‘Link Aadhaar’ under ‘Quick Links’ (no login required).
Step 3: Enter your PAN, Aadhaar number, and name exactly as it appear on your Aadhaar; click “Validate”.
Step 4: An OTP will be sent to your Aadhaar-registered mobile number; enter it.
Step 5: If you are linking after the previous deadline, you will have to pay a penalty of ₹1000 through e-Pay Tax.
Step 6: Submit the form after payment.
A confirmation message will be displayed. It usually takes 3-5 working days for the status to be updated on the portal. After submission, you can verify your PAN-Aadhaar linking status on the portal to confirm successful linking.
What happens if your Aadhaar is not linked to your PAN card?
Missing the deadline of December 31, 2025, may render your PAN inoperative from January 1, 2026, which can disrupt tax filing, refunds, and other financial activities. Some of them are listed below:
Form 15G/H will not be accepted with an inoperative PAN.
Existing Form 15 G/H will become ineffective as long as the PAN remains inoperative.
According to NSDL/CDSL guidelines, is Aadhaar-PAN linking free?
Individuals are required to pay a non-refundable fee of ₹1,000 to submit the PAN-Aadhaar linking request.
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