Why this linking matters
From July 1, 2025, the Central Board of Direct Taxes (CBDT) has made it mandatory to link Aadhaar when applying for a new PAN. This move aims to curb fraudulent identities and enforce smoother verification.
Existing PAN holders must complete Aadhaar linkage by December 31, 2025, or risk PAN inactivation, higher TDS, and inability to file returns or open financial accounts.
Who must link?
As per Section 139AA of the Income Tax Act:
- Anyone holding a PAN as of July 1, 2017 who is eligible for Aadhaar must link it.
- Exemptions: Residents of Assam, Meghalaya, Jammu & Kashmir, non-residents (NRIs), people aged 80+, and foreign nationals.
- If you're exempt but link voluntarily, a fee is applicable.
Step-by-Step: How to Link Aadhaar with PAN Online
- Visit the e-Filing Portal: Go to incometax.gov.in and click on “Link Aadhaar”.
- Enter Details: Fill in your PAN, Aadhaar number, name as per Aadhaar, and mobile number.
- Consent: Tick the checkbox for UIDAI validation and click on “Link Aadhaar”.
- OTP Verification: Enter the OTP sent to your Aadhaar-linked mobile number.
- Pay Fee (if required): If you’re linking after the June 2023 deadline, pay via “e-Pay Tax”.
- Submit & Track: Once submitted, check status anytime on the portal under “Link Aadhaar Status”.
Alternative Method: SMS Linking
If internet access is an issue, link Aadhaar by sending an SMS:
UIDPAN <12-digit Aadhaar> <10-digit PAN>
Send it to the number specified by the Income Tax Department. You will get confirmation upon successful linking.
Common Issues & Fixes
- Mismatch in name/DOB: Update Aadhaar or PAN records before linking.
- Already linked to another Aadhaar/PAN: Visit your Jurisdictional AO to delink and try again.
Important Deadlines & Consequences
Situation | Deadline | Consequences |
---|---|---|
Existing PAN holders | December 31, 2025 | PAN becomes inoperative |
New PAN applicants | From July 1, 2025 | Must link Aadhaar during application |
PAN issued before July 1, 2017 | Must be linked | Otherwise invalid PAN |
Final Tips for a Smooth Process
- Ensure Aadhaar and PAN details match exactly.
- Keep Aadhaar-linked mobile ready for OTP.
- Track your linking status regularly.
Summary
Linking PAN with Aadhaar is mandatory for all taxpayers in India. Use the online portal or SMS option to complete the process. Avoid penalties and ensure uninterrupted financial access by linking before the December 31, 2025 deadline.
Important Links
Last Updated On: 25 July 2025