A PAN card is one of the most critical documents for carrying out any financial activity. Be it for opening a bank account or buying mutual fund units, quoting a valid PAN is mandatory. However, a PAN card only proves an individual's financial identity. Another government-issued document, the Aadhaar card, is used to prove an individual's general identity. Hence, the Indian government has made it mandatory for Indian citizens to link their PAN cards with Aadhaar cards to ensure better monitoring and financial protection.
To link the PAN with Aadhaar, the government has set a PAN-Aadhaar linking last date, and individuals must link their PAN with their Aadhaar before the due date to avoid penalties. This article will help you learn about the Aadhaar-PAN link last date so that you can avoid paying penalties.
What is the PAN Aadhaar linking last date?
The Central Board of Direct Taxes (CBDT) has extended the last date to link PAN with Aadhaar to 31 December 2025. If PAN–Aadhaar linking is not completed by this deadline, the PAN will become inoperative from 1 January 2026. This may lead to issues such as inability to file income tax returns, restrictions on PAN-based financial transactions, and delays in processing refunds or investments.:
- Higher TDS/TCS Rates: Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) will be deducted at higher rates under Sections 206AA and 206CC of the Income Tax Act, 1961.
- Ineligibility for Tax Refunds: You will not receive any tax refunds, and no interest will be payable on such refunds for the period during which the PAN remains inoperative.
- Inability to File ITR: Filing Income Tax Returns (ITR) will not be possible with an inoperative PAN.
- Penalty for Reactivation: To reactivate your PAN, you will need to pay a penalty of ₹1,000 and complete the linking process.
Deadlines and recent updates on PAN Aadhaar link
- The Central Board of Direct Taxes (CBDT) had initially fixed the PAN-Aadhaar linking deadline as 30 June 2023.
- The deadline was later extended to 31 May 2024, with a late-linking fee of Rs.1,000.
- On 3 April 2025, the government announced a special extension for individuals who obtained a PAN using an Aadhaar enrolment ID.
- These individuals must now complete the PAN-Aadhaar linking process by 31 December 2025 using their final Aadhaar number.
- If the linking is not completed by the revised deadline, the PAN will become inoperative from 1 January 2026 for this category of taxpayers.
- Tax experts have clarified that no penalty will apply if the linkage is completed within the extended period.
- However, other PAN holders who missed the earlier deadlines may still need to pay a Rs.1,000 fee under Section 234H of the Income Tax Act.
Why is Aadhaar–PAN linking important?
As per Section 139AA of the Income Tax Act, individuals who were allotted a PAN on or before 1 July 2017 and are eligible to obtain an Aadhaar number must link the two using the prescribed process. If Aadhaar is not linked with PAN within the specified timeline, the PAN becomes inoperative, as stated by the Income Tax Department.
For new PAN applicants, Aadhaar–PAN linking is completed automatically at the time of application. The Link Aadhaar facility is available to individual taxpayers, whether or not they are registered on the Income Tax e-Filing portal.
How to inform Aadhaar number to the income tax department
To inform your Aadhaar number to the Income Tax Department and link it with your PAN, follow these steps:
1. Pay the Linking Fee:
- Visit the Income Tax e-Filing Portal.
- Click on "Link Aadhaar" under Quick Links.
- Enter your PAN and Aadhaar number, then click "Validate".
- Proceed to pay the linking fee of Rs. 1,000 via the e-Pay Tax service.
2. Link Aadhaar with PAN:
- Pre-Login Method:
- On the e-Filing Portal homepage, click "Link Aadhaar" under Quick Links.
- Enter your PAN, Aadhaar number, name as per Aadhaar, and mobile number.
- Click "Link Aadhaar" and enter the OTP received on your registered mobile number.
- Upon successful verification, your PAN will be linked with Aadhaar.
- Post-Login Method:
- Log in to the e-Filing Portal.
- Navigate to "My Profile" and select "Link Aadhaar".
- Enter your Aadhaar number and click "Validate".
- Confirm the details and submit the linking request.
What will happen if you don’t link PAN with Aadhaar
If you were issued a PAN card using an Aadhaar Enrolment ID before October 1, 2024, it's imperative to update your records with your actual Aadhaar number by December 31, 2025, as mandated by the Central Board of Direct Taxes (CBDT). Failure to do so will render your PAN inoperative from January 1, 2026, leading to several significant consequences:
- Inability to File Income Tax Returns (ITR): An inoperative PAN cannot be used to file ITRs, potentially resulting in non-compliance penalties.
- Delayed or Denied Tax Refunds: Tax refunds will not be processed for inoperative PANs, affecting your financial planning.
- Higher TDS/TCS Rates: Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) will be levied at higher rates, increasing your tax liability.
- Restricted Financial Transactions: An inoperative PAN cannot be used for essential financial activities, including opening bank accounts, investing in mutual funds, or purchasing high-value assets.
How to link your PAN to your Aadhaar after deadline?
If you fail to link your Aadhaar to your PAN before the PAN-Aadhaar linking last date, your PAN card will become inoperative, and you will find it difficult to execute financial transactions. However, you can still link your PAN to your Aadhaar after the deadline using the following steps:
Payment of penalty
Step 1: Visit the income tax e-filing portal.
Step 2: Navigate to the ‘Quick Links’ tab and click the ‘e-pay Tax’ option.
Step 3: Under ‘PAN/TAN,’ enter your PAN number and enter it again under the ‘Confirm PAN/TAN’ column. Enter your mobile number and click on the ‘Continue’ button.
Step 4: Enter the OTP received on your mobile number, and you will be redirected to a new e-pay Tax page. Click on the ‘Continue’ button here.
Step 5: Select ‘2026-27’ as the assessment year and select ‘Other Receipts (500)’ under the ‘Type of Payment (Minor Head). Select ‘Fee for delay in linking PAN with Aadhaar’ and click the ‘Continue’ button.
Step 6: You will see the amount of Rs. 1,000 as a late fee under the ‘Others’ tab. Click the ‘Continue’ button and pay the applicable fee.
How to submit online/offline requests for linking of Aadhaar number and PAN?
You can link your PAN and Aadhaar by either logging into your account on the e-filing portal or without logging into your e-filing portal account:
Method 1 - Logging into your account
Step 1: Visit the Income Tax e-filing portal and create an account if you do not have an existing account. Once registered, log in to your account using your user ID, PAN number, and password.
Step 2: After logging in successfully, click the ‘Link Aadhaar’ tab, navigate to the ‘My Profile’ section, and click on ‘Link Aadhaar’ present under the ‘Personal Details’ option.
Step 3: Enter your current Aadhaar number and click the ‘Validate’ button.
Step 4: A pop-up message will appear informing you that you have successfully sent a request to link your PAN with your Aadhaar.
Once you have successfully sent the request to link your PAN with your Aadhaar and re-activate your PAN card, the UIDAI will process the request and review all the information you provided. The process usually takes 7-30 days from the date of submitting the request to UIDAI.
Method 2 - Without logging into your account
Step 1: Visit the Income Tax e-filing portal, navigate to the ‘Quick Links’ section, and click the ‘Link Aadhaar’ button.
Step 2: Enter your current PAN and Aadhaar number and click the ‘Validate’ button.
Step 3: Enter your name as written on the Aadhaar card and Aadhaar-linked mobile number and click on the ‘Link Aadhaar’ button.
Step 4: Enter the OTP received on your mobile number and click the ‘Validate’ button.
Step 5: Your request to link PAN with Aadhaar will be sent to UIDAI, and you will receive a pop-up. This happens if your payment details are already verified on the e-filing portal. If not, you will need to make the payment.
Step 6: After validating the PAN and Aadhaar details, you will see another pop-up message with ‘Payment details not found.’ Click on the ‘Continue to Pay Through e-Pay Tax’ button and pay the required late fee of Rs. 1,000.
Step 7: Once you have successfully made the payment, it will take 4-5 days for your payment to be processed. Only after the payment is successfully processed can you request to link PAN with Aadhaar.
Who needs to link Aadhaar and PAN?
Here are the individuals who are required to link their Aadhaar to their PAN:
1. Resident individuals
All resident individuals in India who have a PAN and an Aadhaar card need to link the two. This includes salaried individuals, professionals, self-employed individuals, and others with a PAN and Aadhaar.
2. Individuals filing income tax returns
If you are an earning individual and required to file an ITR, it is mandatory to link your PAN with your Aadhaar.
3. Individuals executing financial transactions
Those who engage in financial transactions that require quoting the PAN number, such as opening a bank account, buying or selling property, investing in securities, etc., must link their PAN with their Aadhaar.
4. Individuals applying for loans
If you are applying for a loan, banks and financial institutions may require you to link your PAN with Aadhaar as part of the KYC (Know Your Customer) process.
Conclusion
Linking PAN with Aadhaar is now mandatory, and failing to do so results in the PAN becoming inoperative, making it difficult to carry out further financial activities. Hence, you should ensure that you have linked your PAN to your Aadhaar before the Aadhaar-PAN card link last date. However, if you missed the deadline, you can still link your PAN with your Aadhaar by following the steps mentioned above and paying the late fee of Rs. 1,000.
Once you link your PAN to Aadhaar, you can seamlessly invest in various instruments. If you are considering investing in mutual funds, look no further than the Bajaj Finserv Platform. It is designed with unique investing tools, such as a mutual fund calculator, that can help you compare mutual funds and invest in the most suitable mutual fund schemes.
