PAN has become a major requirement for all financial transactions today. PAN is needed for nearly all major transactions including opening bank accounts, buying/selling stocks and securities, filing tax returns, etc. In addition, Aadhaar has developed into a significant part of both Government and Individual Transactions. Therefore, the Government of India has made it mandatory to Link your PAN to your Aadhaar.

You will lose access to your PAN By December 31

The government has stated that you must link your PAN to your Aadhaar by the Deadline of December 31, 2025. If you do not link your PAN to your Aadhaar by December 31, 2025 your PAN will cease to be valid as of January 1, 2026. If you lose your validity on your PAN you may not be able to complete many functions, which may cause many complications in your life.

Who Has To Link Their Aadhaar to Their PAN

According to the Income Tax Department’s Website (https://www.incometax.gov.in/) All Individuals who received their PAN before July 1, 2017, are required to link their PAN to their Aadhaar Number to be able to work on the e-filing portal. Aadhaar verification is also required for new PAN Applications.

Know the easy way to link PAN-Aadhaar

  • To link PAN and Aadhaar, you need to visit the Income Tax e-filing portal.
  • After logging in there, you will find the Link Aadhaar option in the profile section.
  • Here, you need to provide your PAN and Aadhaar number and pay the prescribed fee through e pay tax.
  • After payment, you can link Aadhaar and PAN by visiting the portal.

How to check the status of PAN-Aadhaar Link

If you don’t know whether your PAN is linked with Aadhaar or not, then there is no reason to panic.

  1. Go to the Link Aadhaar Status option on the Income Tax website and enter your PAN and Aadhaar number.
  2. The status will appear on the screen immediately after submission.
  3. Here you will see one of three messages – Linked, Not Linked or In Process.

What to do if PAN and Aadhaar information do not match?

Sometimes, linking problems arise due to a mismatch in name, date of birth or gender. In such cases, Aadhaar details can be corrected by visiting the UIDAI website. Protean or UTIITSL websites can be used to correct PAN information. If the problem persists, biometric verification can be done at the nearest PAN service center.

Why is PAN-Aadhaar linking important?

As per CBDT rules, taxpayers whose PAN has been issued on the basis of Aadhaar Enrolment ID must link their PAN card with Aadhaar. Failure to do so will render the PAN card inoperative and many important financial services may be disrupted.

What are the problems that arise if the PAN becomes inoperative?

If the PAN becomes inoperative, then you

1. Will not be able to file income tax returns.

2. Tax refunds may be stuck.

3. KYC failure may occur in banks, loans and investments.

4. Mutual fund SIPs, share trading and salary credit may be affected.

5. TDS and TCS may be deducted more, which will impact your pocket.

Do you know if your PAN is linked to Aadhaar?

If you are confused or unsure about whether your PAN is linked to Aadhaar, then there is no need to panic. You can easily check your status in just a minute from the comfort of your home through the Income Tax e-Filing Portal.

You will see one of three messages in the status:

  • Linked – This means that your PAN and Aadhaar are already linked. You can rest assured.
  • Not Linked – This means that you need to link your PAN and Aadhaar immediately.
  • In Process – The linking process is in progress. Please check your status again in a few days.

Link PAN-Aadhaar like this-

If the status shows Not Linked:

  1. Log in to the Income Tax e-Filing Portal.
  2. Go to the Profile section and select the ‘Link Aadhaar’ option.
  3. Enter the PAN and Aadhaar number.
  4. Verify with the OTP received on the mobile linked to Aadhaar.
  5. If late fee is applicable, then pay Rs 1,000 through e-Pay Tax.
  6. After payment, the PAN-Aadhaar linking will be completed.

What is the penalty if the deadline is missed?

If you have not linked your PAN earlier and do it after the deadline, then you may have to pay a penalty of Rs 1,000. Your PAN will be reactivated only after paying the penalty. So, don’t wait for the deadline. Check your status now, and if it is not linked, link your PAN with your Aadhaar immediately. Otherwise, many important tax and banking tasks may get delayed.