The Income Tax Department has issued a final reminder to all Permanent Account Number (PAN) holders: the mandatory linking of PAN with Aadhaar must be completed by December 31, 2025. Missing this critical deadline will result in your PAN card being declared "inoperative" from January 1, 2026, leading to significant disruptions in your financial and tax-related activities.
Consequences of an Inoperative PAN Card
An inoperative PAN is not just a minor inconvenience; it can severely hamper your financial life. According to reports, you will be unable to file your Income Tax Returns (ITR), and any pending tax refunds will not be processed. Furthermore, transactions that require quoting your PAN will face hurdles.
Higher rates of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) will be applied. Routine but essential activities like opening a new bank account, investing in securities, or conducting high-value transactions will become difficult or impossible without a valid, operative PAN.
Step-by-Step Guide to Link PAN with Aadhaar
Taxpayers can complete the linking process online through the Income Tax e-filing portal. Here is a simplified guide:
- Visit the official Income Tax e-filing portal: https://www.incometax.gov.in/iec/foportal/ and log in.
- Navigate to your profile section and select the 'Link Aadhaar' option.
- Enter your PAN and Aadhaar details accurately.
- If applicable, proceed to pay the fee via the 'e-pay tax' option. Select the correct assessment year and choose "Other Receipts" as the payment category.
- Generate the challan and complete the payment through your bank's net banking portal.
- Return to the e-filing portal to finalize linking. Enter your PAN, Aadhaar number, and name exactly as it appears on your Aadhaar card.
- Click 'Validate'. An OTP will be sent to your Aadhaar-registered mobile number.
- Enter the OTP and submit the request to complete the linkage.
The verification process is usually swift once the request and payment are submitted. The Income Tax Department forwards the details to the Unique Identification Authority of India (UIDAI) for validation. You can check the status after a day or two to confirm successful linking.
How to Verify Your PAN-Aadhaar Link Status
Unsure if your PAN and Aadhaar are already linked? You can verify in two easy ways:
Online Method: Go to the Income Tax e-filing portal, click on 'Check Aadhaar Link Status', enter your PAN and Aadhaar details, and submit to view the status.
SMS Method: Type UID PAN <12-digit Aadhaar> <10-digit PAN> and send it to 567678 or 56161. For example: UID PAN 345123498761 ABCPS1234D.
Important Penalties and Exemptions
Individuals who have not linked their PAN and Aadhaar by now are required to pay a late fee of Rs 1,000 before proceeding with the linkage. However, there is an exemption for some.
PAN cards issued after October 1, 2024, using an Aadhaar enrolment ID are exempt from this late fee. Such holders can link their PAN with Aadhaar free of charge until the December 31, 2025 deadline.
The tax department has reiterated that this linkage is mandatory for all eligible PAN holders, particularly those who were allotted their PAN on or before July 1, 2017.
What to Do If Details Don't Match
Discrepancies between your PAN and Aadhaar records (like name, date of birth) can block the linking process. To resolve this:
- Correct your details on the UIDAI portal for Aadhaar updates.
- Update your PAN information through Protean (NSDL) or UTIITSL portals.
- If issues persist, visit an authorized PAN service centre for biometric verification.
With the deadline fast approaching, taxpayers are urged to complete this crucial compliance step immediately to avoid last-minute technical glitches and ensure their financial operations continue without interruption.
