AADHAR PAN Linking

AADHAR PAN Linking

Aadhaar PAN Linking in 2025: A Complete Guide to Avoid Penalties
If you are an Indian taxpayer, one of the most critical compliance requirements you must fulfill is the linking of your PAN (Permanent Account Number) with Aadhaar. The Government of India has made it mandatory to link Aadhaar with PAN to ensure transparency in financial transactions, reduce tax evasion, and eliminate duplicate PANs.
In this detailed guide, we explain why Aadhaar-PAN linking is important, how to do it, what happens if you don’t link it, and the steps to resolve issues — all updated for 2025.

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📌 What Is Aadhaar-PAN Linking?
Aadhaar-PAN linking is the process of connecting your 10-digit PAN card, issued by the Income Tax Department, with your 12-digit Aadhaar number, issued by UIDAI (Unique Identification Authority of India).
The Income Tax Department uses this linkage to verify taxpayers’ identity and maintain accurate tax records.

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✅ Is Aadhaar-PAN Linking Mandatory?
Yes. As per Section 139AA of the Income Tax Act, 1961, it is mandatory for every individual who has been allotted a PAN and is eligible to obtain an Aadhaar number to link both documents.
Failure to link Aadhaar with PAN results in the invalidation of the PAN, which means you won’t be able to:
•    File income tax returns (ITR)
•    Open a bank account
•    Invest in mutual funds or shares
•    Carry out high-value transactions

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📅 Aadhaar-PAN Linking Last Date (Updated for 2025)
As of the latest notification by the Income Tax Department, the last date to link PAN with Aadhaar is June 30, 2025. If not linked by this date, your PAN will become inoperative.

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💸 What Is the Penalty for Not Linking Aadhaar with PAN?
If you miss the deadline to link PAN with Aadhaar, a penalty of ₹1,000 will be levied under Section 234H of the Income Tax Act.
Also, once your PAN becomes inoperative:
•    Your TDS/TCS may be deducted at a higher rate
•    You cannot file ITR or claim refunds
•    Your investments and financial transactions may be blocked

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🧾 Documents Required to Link Aadhaar and PAN
You don’t need to submit any physical documents. You only need:
•    A valid PAN
•    A valid Aadhaar number
•    Registered mobile number linked to Aadhaar (to receive OTP)

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🖥️ How to Link Aadhaar with PAN Online (Step-by-Step)
You can link Aadhaar with PAN online through the Income Tax e-filing portal.
👉 Step-by-Step Process:
1.    Visit: https://www.incometax.gov.in
2.    Click on "Link Aadhaar" under Quick Links
3.    Enter your PAN, Aadhaar number, and Name as per Aadhaar
4.    Tick the checkbox if only the year of birth is mentioned on Aadhaar
5.    Enter the captcha code (or OTP for visually impaired users)
6.    Click “Link Aadhaar”
If the details match with the UIDAI database, your Aadhaar will be successfully linked to PAN.

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📱 How to Check Aadhaar-PAN Link Status
To verify whether your Aadhaar is already linked with your PAN:
1.    Go to https://www.incometax.gov.in
2.    Click on "Link Aadhaar Status"
3.    Enter PAN and Aadhaar number
4.    Click on “View Link Status”
You’ll get an on-screen message confirming the status.

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🔁 What If There’s a Name Mismatch?
•    Minor mismatch (like initials): Aadhaar OTP will be sent for validation.
•    Major mismatch (like different names): You must first correct the name on either Aadhaar or PAN.
You can update:
•    PAN details at: https://www.tin-nsdl.com
•    Aadhaar details at: https://uidai.gov.in
Once the details match, you can proceed with linking again.

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🧑 Who Is Exempt from Linking PAN with Aadhaar?
The following individuals are exempt:
•    NRIs (Non-Resident Indians)
•    Residents of Assam, Meghalaya, and Jammu & Kashmir
•    Individuals above 80 years of age (as of last FY)
•    Foreign nationals
✅ However, if you fall under these categories but still receive notifications, consult a tax advisor and ensure your records are up to date.

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🏁 Conclusion
Aadhaar-PAN linking is not just a technical requirement — it’s a legal obligation. With the increasing use of PAN for banking, investments, and compliance, an inactive PAN can halt your financial activities and invite penalties.
Don’t wait until the deadline. Link your PAN and Aadhaar today through the income tax portal. It’s quick, easy, and ensures your financial identity stays active and valid