Aadhar PAN Linkage

For equity shares and equity-oriented mutual funds covered under Section 111A, the short-term capital gain (STCG) is taxed at a flat rate of 15%, provided Securities Transaction Tax (STT) has been paid on the transaction. This tax rate applies regardless of the taxpayer’s income tax slab. For other types of assets, the calculated STCG is added to the taxpayer’s total taxable income and taxed according to the applicable income tax slab rate. The final tax liability depends on the individual’s overall income and the tax slab they fall under during the relevant financial year, as per prevailing income tax rules.

Linking of Aadhaar with PAN is mandatory

According to Section 139AA of the Income Tax Act, anyone who has been assigned a Permanent Account Number (PAN) and is eligible to get an Aadhaar number must link their PAN with Aadhaar.

If this Aadhaar–PAN linkage is not done, the PAN will be deemed “inoperative.” Consequently, taxpayers will have to face several financial repercussions, such as:

• Deduction of Tax Deducted at Source (TDS) at higher rates.
• Deduction of Tax Collected at Source (TCS), even for cash withdrawals.
• Forms 15G and 15H (used to declare income below the taxable limit) will not be accepted, and all previously submitted forms will be rendered invalid.
• You cannot open and process transactions in Demat accounts.
• Restrictions on investing in RBI Bonds and Sovereign Gold Bonds (SGBs).

Also, please be aware that if your PAN and Aadhaar are not linked, the Income Tax Department will not process your income tax returns until the linking is completed.

Also read: Income tax slab for FY 25–25

Recent updates on Aadhaar PAN linkage 2026

As of April 3, 2025, the Central Board of Direct Taxes (CBDT) has declared that individuals who received their PAN using an Aadhaar enrolment ID on or before 1st October 2024 must complete the PAN-Aadhaar linking process by 31st December 2025. Failure to do so will result in their PAN becoming inactive starting 1st January 2026.

How to link Aadhaar Card with PAN Card

Aadhaar PAN linkage is a simple process and is accessible to all citizens. You can perform this linking using any of the three methods mentioned below:

Method 1 - Without logging In

• Step I: Visit the Income tax website
  • Go to the official website of Income Tax e-filing
  • Click on the option "Link Aadhaar”
• Step II: Enter details
  • Provide your
    • PAN number
    • Aadhaar number
  • Enter your exact name as per Aadhaar.
  • You need to make sure that the gender and date of birth on both Aadhaar and PAN match exactly.
  • Next, click on "Link Aadhaar”.
• Step III: OTP Verification (in case of mismatch)
  • If there is a minor name mismatch, an Aadhaar OTP will be needed.
  • Submit the OTP and proceed.

It must be noted that if the name on the Aadhaar differs completely from the name on the PAN card, the linking will fail. Now, you will be prompted to update the name in either the PAN or Aadhaar database.

Method 2 - By logging In

• Step I: Registration
  • Register yourself on the Income Tax e-filing portal.
  • If you already have a valid registration, you can avoid this step.
• Step II: Login
  • Log in to the e-filing portal.
  • To do this, you will need to enter your:
    • Login ID
    • Password, and
    • Date of birth
• Step III: Profile settings
  • Go to the "Profile Settings" tab.
  • Find the option "Link Aadhaar" (usually appears at the end) and click on it.
• Step IV: Verify details
  • Now, the following details (taken from your registration) will automatically appear:
    • Name
    • Gender
    • Date of birth
  • Cross-check these details with those on your Aadhaar card.
• Step V: Enter Aadhaar details
  • If the details match, enter your Aadhaar number and the captcha code.
  • Then, click on the "Link Aadhaar" button.
• Step VI: Confirmation
  • A pop-up message will confirm that your Aadhaar card has been successfully linked to your PAN card.

Method 3 - Via SMS

The Income Tax Department also provides the option to link your Aadhaar with your PAN using a simple SMS process. To start the process:

• Send an SMS to 567678 or 56161
• Use this SMS format - UIDPAN <12 digit Aadhaar card Number><10 digit PAN card number>
• For example,
  • Say your Aadhaar card number is 123456789123 and PAN number is XYZA2124M
  • Now, you will send this SMS: 123456789123XYZA2124M to either 567678 or 56161
• If there is no mismatch in the records, the Aadhaar PAN linkage will be completed successfully.
• Otherwise, in case of a minor mismatch, you will need to use the online methods (either Method 1 or Method 2).

Also read about: How to check mutual fund status with folio number

Importance of linking Aadhaar Card with PAN Card

Aadhaar PAN linkage is mandatory and important for several reasons. It is worth mentioning that both Aadhaar and PAN serve as essential proof of identification. They are often required for verification and registration purposes across various services, such as:

• Opening Provident Fund accounts (PFAs)
• Opting for a phone number
• Opening bank accounts, and
• Filing income tax returns

Thus, the government has mandated linking Aadhaar with PAN as it will help them prevent tax evasion and administer taxes more effectively. By linking these IDs, the government can:

• Track taxable transactions more accurately

  
  

  and

• Ensure that individuals and entities cannot evade taxes by misreporting their financial activities.

Moreover, linking Aadhaar with PAN simplifies the process of filing income tax returns. It enables individuals to file e-returns seamlessly on the income tax portal and eliminates the need to submit income tax acknowledgements separately.

How to check if your Aadhaar is linked to your PAN Card

If you are unsure whether your PAN and Aadhaar are linked, you can follow these steps to check their status:

• Visit the Income Tax e-filing portal.
• Click on the "Link Aadhaar Status" option under the quick links on the homepage.
• Enter your PAN and Aadhaar numbers and click "View Link Aadhaar Status."

If your PAN and Aadhaar are not linked, you will see a message indicating this. You can then follow the necessary steps to link them. If they are already linked, you can proceed with filing your income tax returns.

Furthermore, please note that if your PAN was not linked with Aadhaar by the deadline, it would have become “inoperative”. Now, you will be required to reactivate it by:

• Paying a penalty

  
  

  and

• Requesting the Aadhaar PAN linkage

What happens to PAN cards not linked with Aadhaar

For resident Indians

PAN cards that were not linked with Aadhaar by 30 June 2023 have now become inoperative. According to rule 114AAA of the Income Tax Rules, once a PAN becomes inoperative, individuals will not be able to furnish, quote, or use it, and will face legal consequences under the Income Tax Act.

An inoperative PAN results in several consequences, including:

• Pending tax refunds and interest on those refunds will not be released.
• Tax deducted at source (TDS) will be charged at a higher rate as per section 206AA.
• Tax collected at source (TCS) will also be levied at a higher rate under section 206CC.

Note:

As per CBDT Circular No. 6/2024, if your financial transactions occurred on or before 31 March 2024 and you linked your PAN with Aadhaar by 31 May 2024, you will not face these penalties.

Importantly, an inoperative PAN is not the same as an inactive one—you can still file your income tax returns even if your PAN is inoperative.

For NRIs/OCIs exempt from PAN-Aadhaar linking

Non-resident Indians (NRIs) and Overseas Citizens of India (OCIs) are generally exempt from the PAN-Aadhaar linking requirement. However, their PAN cards may become inoperative due to certain reasons:

• For NRIs: If they haven’t filed income tax returns in the past three assessment years and their residential status isn’t updated with the Income Tax Department or their Jurisdictional Assessing Officer (JAO), their PAN may be marked inoperative. To restore it, they must submit documents confirming their NRI status to their JAO.
• For OCIs/foreign citizens: If they applied for PAN as residents or failed to update their status with the JAO and haven’t filed ITR for the past three years, their PAN may also become inoperative. They must submit their residential status documents to the JAO and request an update in the PAN database.

PAN-Aadhaar link fees

PAN-Aadhaar link fees refer to the charges paid for linking your Permanent Account Number (PAN) with your Aadhaar card after the prescribed deadline. Currently, individuals who have not linked their PAN and Aadhaar within the specified time must pay a late fee of Rs. 1,000 before completing the linking process on the Income Tax Department portal. Once the fee is paid, the linking request can be submitted online. Failure to link PAN with Aadhaar may result in the PAN becoming inoperative, which can affect income tax filing and other financial transactions. Therefore, it is advisable to complete the linking process as soon as possible.

PAN-Aadhaar link customer care numbers

If you require assistance with linking your PAN and Aadhaar, you can reach out to the following helplines:

• UIDAI (for Aadhaar-related queries): Call the Aadhaar helpline at 1947.
• NSDL/Protean (for PAN-related queries): Contact 020-27218080, available from 7:00 AM to 11:00 PM all days of the week.
• Income Tax Department (for penalty or portal-related queries): Reach out at 1800 419 0025, 1800 103 0025, 91-80-46122000, or 91-80-61464700, available between 8:00 AM and 8:00 PM, Monday to Friday.

Failing to link PAN with Aadhaar may render your PAN inactive, which can impact your ability to complete financial transactions. If your PAN-Aadhaar is still not linked, ensure to follow the official process, make the penalty payment if applicable, and submit the request. The linking is typically completed within 30 days, after which your PAN becomes active again.

How to link your PAN to your Aadhaar after the deadline

For the uninitiated, the original deadline for Aadhaar PAN linkage was 30th June 2023. In case you failed to link the two by this deadline, you can still link your Aadhaar with PAN using these two steps:

I. Payment of penalty

Since you missed the deadline, you must now pay a penalty to request linking. You can do so by following these steps:

• Visit the Income Tax e-Filing Portal.
• Click on the ‘e-Pay Tax’ option under ‘Quick Links’.
• Enter your PAN number and confirm it.
• Provide your mobile number and click ‘Continue’.
• Verify your identity using the OTP sent to your mobile.
• On the e-Pay Tax page, click ‘Continue’ under the ‘Income Tax’ tab.
• Make the following selections:
  • Assessment Year as ‘2026-27’
  • Type of Payment as ‘Other Receipts (500)’
  • Sub-type as ‘Fee for delay in linking PAN with Aadhaar’.
• Now, click ‘Continue’, and the penalty amount will be pre-filled.
• Proceed and complete the payment using one of the authorised banks listed.

II. Submit online/offline requests for linking of Aadhaar number and PAN

To perform Aadhaar PAN linkage, you can follow either of these two steps:

Method 1: Without logging in

• Go to the Income Tax e-filing portal.
• Click on the ‘Link Aadhaar’ tab under quick links.
• Enter your PAN and Aadhaar numbers and click ‘Validate’.
• Enter your name as per your Aadhaar card and mobile number, then click ‘Link Aadhaar’.
• Enter the OTP sent to your mobile and click ‘Validate’.
• If payment details are not verified, follow the prompt to pay the fee via “e-Pay Tax”.
• Once the payment is processed, usually within 30 minutes to an hour, you can complete the linking request.

Method 2: By logging in

• Register on the Income Tax e-filing portal (ignore this step if you have already registered).
• Log in using your user ID and password.
• Click on ‘Link Aadhaar’ or go to ‘My Profile’.
• Now, select the ‘Link Aadhaar’ option available under ‘Personal Details’.
• Enter your Aadhaar number and click ‘Validate’.
• A pop-up will confirm that your Aadhaar has been successfully linked to your PAN.

Important points to note while Linking Aadhaar with PAN Card

• Please ensure you have your Aadhaar card, PAN card, and mobile number handy.
• Reactivating an inoperative PAN after linking with Aadhaar may take 7 to 30 days from the date the request is submitted.

Aadhaar-PAN linkage no longer mandatory for mutual fund investors

You are correct. The Securities and Exchange Board of India (SEBI) has revised its KYC guidelines and removed the mandatory requirement to link your PAN with Aadhaar to obtain a "KYC-registered" status. This means that investors can complete the KYC process and invest in mutual funds without linking their PAN and Aadhaar.

However, it is important to understand that certain restrictions or differences may apply depending on your KYC status and the requirements of the financial institution. Therefore, while investing is possible, you should be aware of the applicable conditions and ensure that your KYC details remain valid and up to date.

Also read about: How to do mutual funds KYC

Conclusion

Aadhaar-PAN linkage is a mandatory requirement introduced by the Government of India to improve transparency in financial transactions and strengthen tax compliance. It helps the Income Tax Department track financial activities more effectively and reduce tax evasion. PANs that were not linked with Aadhaar became inoperative from 1 July 2023. However, taxpayers can still complete the linking process by paying a late fee of Rs. 1,000 through the Income Tax e-Filing portal. 

As of 2026, an inoperative PAN can lead to higher TDS deductions, withholding of tax refunds, non-payment of interest on refunds, difficulties in filing income tax returns, and restrictions on certain financial transactions and KYC-related activities. Once the PAN-Aadhaar linkage is completed, the PAN can be reactivated.

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